Business Sales: Janine Sells Her Rural Retail Business Without a Physical Location
Selling a business that needs to be relocated from its current premises
If you’re thinking of selling your business, you might be wondering how much your business is worth. After all, the value of your business is determined by a number of factors, including your turnover, your profit margins, and your growth potential. But what if the current business location is no longer available or you don’t have physical premises? Does that mean your business is worth less or it becomes harder to sell? The simple answer is no and here’s why:
Businesses rarely remain in the same location for their whole existence. Whether your company has outgrown its current headquarters, or you simply need a new location because the lease is no longer available, relocating can be overwhelming for you but there are actually some advantages to not having a set location
Your business sale could potentially attract a larger market if you’re not limited by geographical area. It also makes the opportunity very appealing for competitors looking for an easy acquisition process without needing to consider maintaining the current location. Another advantage of selling a business without set premises is that it’s much more flexible. You can move your business online or to another suburb that works with your lifestyle.
It all comes down to demonstrating the positives to a potential buyer and this was exactly what we did with the sale of Janine’s retail store.
Janine contacted Bonza to ask about the saleability of her livestock supply business because she was concerned that it would not be possible. Her lease was not renewable and ideally the business needed to be out of its current location as soon as possible.
The process was explained to Janine and all aspects were considered when pricing the opportunity for sale. As this business was a rural livestock supply store, the new location needed to be within a reasonable distance of nearby farms and customers that the store supplied.
As it turned out, Janine’s business was sold and settled in under 60 days to someone who lived across the road who happen to be researching businesses to buy in the local area and came across the Bonza advert on Seek Business.
In this case, the business relocation process was a simpler one than some but it’s all about making the buyer feel comfortable and preparing them for the pending move required, to ensure the move doesn’t disrupt the business.
Here is a list of our advice when planning to move your business:
- Choosing your new location:
When choosing a location for your business, it is important to consider accessibility for employees, suppliers, and customers. You should also consider the size of your business and how much space you’ll need, as well as the possibility of expansion. Other factors to keep in mind include inventory space and affordability. It is also important to be familiar with the area you are moving to and research any potential concerns with new locations.
- Keeping track of what you pack:
It is important to take inventory of all equipment before and after a move. Doing so helps to avoid losing track of items during the relocation process. Any sensitive information should be backed up where possible and precautions should be taken when transporting it.
- Move your files online:
One advantage of electronic document storage is that there is less chance of loss during a transfer. Even if you continue to keep physical data, be sure to scan them into your online system before relocating. In this manner, you may easily locate anything that does go misplaced.
- Coordinate the move:
It is important to coordinate with clients, suppliers and employees when relocating, in order to avoid as much disruption to the business as possible. A good option is to stagger the move or have a skeleton crew if everyone cannot be moved at once. Make sure that your suppliers are aware of the move and have updated their systems with the new address. Similarly, make sure clients are aware of the move by sending out an email or making appropriate calls.
- Timing is crucial:
Picking the right time to move can depend on many factors. Avoid any busy or crunch times if possible. For example, depending on where your business is conducted, coordinating with overseas holidays may create unexpected issues. There may be high demand for your product internationally at a time when it seems feasible to relocate within Australia.
- Updating your details:
Businesses that are incorporated need to notify ASIC of their change of address within 28 days, or face a late fee. The business should also update its information on the Australian Business Register.
- Use this opportunity to your advantage:
One advantage of shifting is that it allows you to implement some improvements that were previously impractical. For instance, replacing obsolete furniture or improving specific equipment. Not everything in the business must move just because it is relocating. This is particularly true if the business is opening a new branch or even shrinking.
All in all, selling a business that needs to be relocated can be seen as a positive thing. Yes, the new owner will need to find a new location but they are also getting a fantastic pre-existing business where all the hard work has already been done. By being upfront and transparent about the situation, you give the buyer all the information they need to make an informed decision. And that is always going to be beneficial for everyone involved.
