Popular businesses to start and sell include;
1. Online stores and e-commerce businesses
2. Marketing agencies
3. Consultancy services
4. Software development and IT solutions
5. Professional service firms such as accountants and legal advisors
6. Cafes and restaurants
7. Property development businesses
8. Car dealerships and garages
9. Manufacturing companies
10. Recruitment agencies
A great way of raising funds for other projects or simply removing yourself from the business is to sell it.
Obviously, you firstly need to have a business that someone wants to buy. For that, there are no shortcuts, hacks or secrets, other that hard work.
A saleable business is one that has a strong competitive advantage, a good reputation, an attractive price point, and a large potential customer base. Additionally, it should have well-developed systems and processes in place to ensure smooth operations and profitability. It should also be well-marketed with a clear brand identity that resonates with customers. It should have an experienced management team capable of growing the business.
According to assyntcf.co.uk, rising turnover, profits and cash generation are important, but so is the bigger picture.
Why sell a business?
Business owners may decide to sell their business for a variety of reasons. It can be an effective way to capitalise on their accomplishments and make the most of their hard work. Some may wish to leave the industry or explore new opportunities, while others might consider retirement or other pursuits. Selling can also help reduce financial obligations and generate income that they can reinvest in future activities. In addition, personal situations such as health problems, family commitments or relocation could lead them to put their business up for sale.
Find out more about selling a business
Preparing your business for sale
When it comes to selling your company, achieving a consensus among all of the shareholders is essential. After all, limited companies own their unique assets and obligations that must be transferred to the buyer when shares are sold. Thus, if you desire to successfully part with your business, obtaining approval from every shareholder is necessary for success.
Rights of existing shareholders
Pre-emption rights allow existing shareholders to buy shares before they become available to a third party buyer, either as part of a new share offering by the company or through a stock transfer by an existing shareholder.
When you want to sell a business, it is important to check the rules for shareholders. These rules are written down in the company’s agreement and Constitution. Make sure you follow these rules or you could get into trouble.
Capital gains tax
When you sell your business , you may make a profit. This is called a ‘capital gain’. Capital gains tax is when the government charges money on the profit from selling an asset that has become worth more. It’s not the amount of money you get from selling it that is taxed, it’s how much more valuable it has become.
Selling your assets
When selling a business, all of the assets of the company are typically included in the sale. This could include premises, equipment and machinery, inventory, intellectual property and customer lists. Depending on the size of the business and its structure, other items such as cash, accounts receivable and securities may also be part of the sale. As such, sellers should assess their value and determine which ones are necessary for potential buyers to conduct their own due diligence before acquiring them.
It is important to identify any liabilities that may accompany those assets when they are sold.
Selling part of a business
When selling part of your business, it is essential to keep staff informed. This includes providing details about the sale such as the reason for it and any redundancies or relocation benefits that may apply. Additionally, it is important to let affected employees know their rights under the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003. Planning ahead is essential to ensure a smooth transition and make sure business operations are not affected during this process. If you are a sole trader, the process is slightly more straightforward.