Selling my small business

LucySwann wrote: »

Hi All

I’m a sole trader, and I run a children’s party hire business.

It makes a good profit, but as I’ve recently returned to work full time I am unable to give the business the level of commitment it deserves.

I’d like to sell for around £3,000.

I’ve listed it on gumtree and Facebook marketplace, and I’ve also signed up to a 20 day free trial for a website called BusinessesForSale.com

Does anyone have any advice or suggestions for places I could list the business?

I’m keen to sell as soon as possible, and don’t really know where to start!

Many thanks

You will not be selling "the business" as that does not exist as an entity if you are a sole trader.

What you will be selling is the goodwill that the business has, any intellectual property that you own in connection with the business and any physical items that you have that you use for the business. Note the business does not own any of these physical or non-physical items. You own them.

You will need to research whether your gumtree, facebook accounts etc where you advertise your business can be transferred from your name into someone else's name. I doubt whether they can.

I have no experience of agents who sell businesses, but I believe there are many dubious ones out there.

martindow wrote: »

And presumably even good ones would take a sizeable fee or percentage of the selling price.

None of them will be interested on a business with a sale price of only £3,000 - their fees will take most, if not all, of that. It's hard enough getting legitimate decent business agents interested for a business selling for £25k!

OP, have you thought about listing it on Ebay or in the local newspaper?

If you have more than just the physical items that you use for your business and have intellectual property such as a trademarked business name, goodwill, or a client list to sell, then you could consult your accountant to find a solicitor who could advise you on how to sell these instead of getting an agent.