| We've all been there! You worked your tail off for | | | | your money-losing business? Because many times it is |
| years, you put your heart and soul and everything else | | | | cheaper to buy an existing business that is to start one |
| you had into building a business but it just didn't work | | | | from scratch. And as an entrepreneur, they may have |
| out. Sure the company makes money, and you're able | | | | ideas that you've never thought of to turn the business |
| to meet payroll most of the time, but as far as being | | | | around... that's what they do. |
| profitable... well that's another matter. | | | | The next way to sell an unprofitable business is to |
| And you finally made the decision, it's time to get out. | | | | consider the company's current management. Sure, |
| So how exactly do you sell an unprofitable business? | | | | you were the owner, but have you been running things |
| Believe it or not, even a company that doesn't make a | | | | on a day-to-day basis? There's a good chance that |
| profit, still has value and is worth money to the right | | | | you had a management team in place, and those |
| people. In this article I'm going to discuss several ways | | | | managers may want to buy the company from you. |
| to sell an unprofitable business that you may not have | | | | Current management can always find venture capital |
| thought about. | | | | for seed money if necessary. |
| In my mind there are basically for potential ways to sell | | | | The fourth and last way to sell an unprofitable |
| a company that is losing money. | | | | business is to look for foreign companies. Many times |
| The first way to sell an unprofitable business is to look | | | | foreign companies are just looking to get in the front |
| for a large publicly traded company. I'm talking about | | | | door in a particular US market. They just want a |
| companies who's stock trades on the New York | | | | toehold in America, and you can give them one! There |
| Stock Exchange or the NASDAQ. Look for a | | | | may be additional hurdles for this technique if your |
| company that closely mirrors the industry that you are | | | | company is a technology company, in which case the |
| in or one that has a specific need for what your | | | | US government may need to sign off on your sale to |
| company offers. These companies often have large | | | | a foreign company. But if your company doesn't deal in |
| sums of money at their disposal, as well as stock in | | | | technology or another strategic industry, selling to a |
| their own company to use as incentives. Just because | | | | foreign company may be just the thing. |
| your company is not profitable, doesn't mean it would | | | | So there you have it four ways to sell an unprofitable |
| be unprofitable for them. Often economies of scale | | | | business! Whichever way you choose, the next step is |
| allow large companies to turn a profit when a small | | | | to quietly send out test balloons, that is, send out |
| company would not. | | | | feelers to whichever group you've decided to |
| The next way to sell an unprofitable businesses is to | | | | approach. Look at it from the potential buyers point of |
| look for entrepreneurs. People who like to buy and run | | | | view, and be ready to show them exactly why your |
| companies often have a higher risk tolerance. Look for | | | | company makes sense from their point of view and |
| an entrepreneur with experience in your specific | | | | you will be just fine. |
| market or industry. Why would an entrepreneur buy | | | | |