Over the last five years, the bed and breakfast industry has significantly expanded throughout the United States. In 2019 alone, bed and breakfasts brought in over $3 billion in total revenue. As a bed and breakfast owner, you want to be sure your hard work pays off when it comes time to sell. To minimize the stress that comes along with the process, VR Business Brokers of Charlotte has created a checklist to assist you through the beginning stages. Continue reading to learn how to sell a bed and breakfast in Charlotte, NC.
HOW TO SELL A BED AND BREAKFAST IN CHARLOTTE, NC
When it’s time to sell your business, you want to leave it with a qualified buyer who will carry on your legacy. By following these basic guidelines, you’ll be well on your way to successfully selling your bed and breakfast.
1. DEVELOP AN EXIT STRATEGY
Regardless of where you find yourself in the business owners’ journey, it’s best if you have a clear exit strategy in place. You should clearly outline vital details like when you plan to exit your business, how long you plan to be involved, and if your current employees will stay on with the company. Your exit strategy helps to create a timetable of when you’d like to have things accomplished throughout the selling process. Staying within your designated guidelines and time frames will ensure a smooth transaction.
2. GET FINANCES AND DOCUMENTS IN ORDER
Potential bed and breakfast buyers will inquire about your business’s current financial standings and paperwork. From tax and financial statements to lease agreements and employee contracts, you’ll need to have possession of these documents during the due diligence process. It may be beneficial to hire a lawyer or accountant to assist with this portion of the selling process.
3. DETERMINE STRENGTHS AND WEAKNESSES
To increase the value of your business, you’ll need to identify your weaknesses and play into your strengths. Set goals that will help you improve your shortcomings. Consider listing your inn on Airbnb or another rental site to garner more popularity. Then determine what makes your inn stand apart from other like businesses in the area. Gather testimonials from satisfied customers to show potential buyers the incredible work you do. Your staff of innkeepers and the number of guest rooms can improve your bed and breakfast’s market value.
4. OBTAIN A VALUATION
Hiring a professional valuation business to value your bed and breakfast is a commonly overlooked step in the selling process. Business owners tend to overvalue their business, making it harder to find a qualified buyer. By hiring a third-party service, a professional will be able to value your breakfast inn and decide upon an accurate and fair asking price. Doing so will help you stand firm in your selling price when it comes to negotiations.
5. HIRE A BUSINESS BROKER IN CHARLOTTE, NC
Once you’re ready to list your bed and breakfast for sale, you should consider hiring a business broker to assist in selling your bed and breakfast in Charlotte, NC. When you enlist the support of a business broker, you will be able to focus on the day-to-day operations. At the same time, they’ll establish a marketing plan to attract qualified buyers in the area. A business broker will ensure a smooth and painless transaction while keeping your best interest at the forefront.
Get started on selling your bed and breakfast by contacting VR Business Brokers of Charlotte. With years of experience in the area, our expert brokers will find the right buyer in optimal time.