Vending Business For Sale
Are the words vending business for sale of concern to someone just getting started or only to the seasoned veteran, who is ready to retire?
My thoughts are it should be important to both. For the young couple just starting out in the vending business a dream of being able to sell out and travel can help provide the goal that drives a person on.
For the couple ready to retire the words vending business for sale are now the key to the dream they have been pursuing a lifetime.
What To Expect When You Sell
One of the hardest things about selling is putting a price on the business. The first thing you will do is to create a list of all of the assets you have.
Some businesses have all of their equipment numbered and a list is kept of model numbers and serial numbers and the location of the site where the equipment is located. When it comes time to sell this is of great value to the selling company.
With the list of all your equipment you can start putting a price on each piece of your equipment. This helps you with putting the price on your hard assets and gives the prospective buyer something to take to their banker.
Inventory is of value when you have your vending business for sale. A prospective buyer will normally want you to collect the money from each machine for the last time and fill the machine full of product.
You will at that time take a count of each item in the machines and the retail value will be listed along with the count. On your last day of business you and a representative of the company buying your company will do an inventory of the entire product in your trucks and the warehouse.
Most companies will add up the retail value of the inventory and then take that times 50 percent to come up with a wholesale value for your inventory. This is not an exact way of doing things but you must remember you will be dealing with thousands of items. Making things too difficult may turn a company off and could kill the sale
Cash At The Closing Of The Sale
You should receive cash from the buyer for the assets and the inventory they will be receiving on the day you close the sale. Any money you owe on the business will have to be taken care of on your closing day.
Many times the buyer will make out two checks one for you and one to the bank that you owe money to on your business. This protects the buyer that no one else has a hold on any of the property they are purchasing.
Money Beyond The Vending Business For Sale Closing Date
You have only collected money for your assets and inventory at this time. There should be some profit beyond this. Most companies will receive a percent of the sales for the next 5 years.
The reasoning behind this is it gives the buying company some assurance that their new accounts will be staying with them for at least the next five years. It also gives you an incentive to do what ever you can do to keep your accounts on board with the new owner.
Should You Wait On The Buyer To Approach You Or Advertise?
It is not likely you will want to advertise locally that your business is for sale. That will give your competition a reason to go visiting your accounts. They will do what ever they can to convince your customers they should get a new vendor before the possible sale is made.
A good salesman will plant ideas and worries in the head of your customers that can convince them they should find a new vendor ahead of time.
You may want to advertise in a trade magazine that your customers should not have an opportunity to see. I would suggest not listing your company name. You can list it as vending business for sale.
I have always thought the best way to approach a prospective buyer in your immediate area is in person. You will be able to gauge their interest in your company and it doesn’t put anything in writing that could be used to take your accounts away with out paying you.
Most buyers are going to want you to sign a non-compete clause at the closing of the sale. After all, if you were able to build a successful business in their area you have made a lot of friends and acquaintances and the buyer is within reason to ask for this.
Is There Any Other Way I Can Profit From This Sale?
There are a couple of ways I can think of for you to continue to profit. In many cases you will be offered a position with the company you are selling to. Who better than you to represent the new owner with your old accounts? Many entrepreneurs find this to be agreeable.
When I sold out I was told the only way they would be interested in the purchase of my company was if I was a part of the deal. It continues to provide me with a good income and I have enjoyed the arrangement.
Another way is to write about your experience as I’m doing right at this moment. We all have a story to tell whether it be about business or a hobby or many other number of things we know about. If you would like to know more about writing for profit and fun, just follow this
Return from Vending Business For Sale to Landing The Large Vending Account
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