Shopify has become one of the most popular eCommerce platforms due to the ease of running a business on it and the ability to expand through it. Over half a million entrepreneurs have active Shopify stores reaching out to several millions of customers. While many people are building a business with the predetermined ambition of selling it for a profit, putting your Shopify store up for sale may just be the organic next step for you. The reasons can be many, but the desired outcome is common – profits. Buyers, too, are constantly on the lookout for Shopify stores for sale, as it is a chance for them to take over an already established business on a widely popular platform. This is far more convenient than building a business from scratch. Let us take a look at these, and other compelling reasons and benefits of listing your Shopify store for sale and how to go about doing so.
Ease of Selling
Since Shopify is such a well-known platform, Shopify stores for sale find it easy to attract buyers. As long as your business is performing well and has a sustainable model, it will not be long before you can start the negotiation process to complete the sale. However, it does require you to properly organize and gather the data that buyers will want to see. This includes financial data such as profit and loss statements, sales figures, amounts payable and receivable, outstanding dues (if any), taxes paid, expenses such as salaries, vendor and supplier payments, and so on.
Buyers are looking at businesses that are low on debt and have the ability to sustain for years to come. This is why apart from the financials, they will also be interested in other performance indicators such as online traffic, average customer reviews, time spent on your online store, etc. While a lot of these metrics are provided by Shopify as a platform, it is recommended to maintain such data on your own accord as well.
Convenient Transfer of Ownership
Unless you have a particularly complex legal structure, Shopify stores for sale present a convenient opportunity for buyers to take over your business. However, for you to receive the rewards you expect, they must be able to see the ease of operating it under the new ownership. Smooth and streamlined operations give buyers the confidence of being able to get a quick return on their investment from the very beginning.
To achieve this, you should have meticulously documented processes and Standard Operating Procedures built for all the various functions that your business entails. Having these in place allows the new owners to comfortably replicate the business model and troubleshoot areas that are underperforming. Detailed training manuals help new hires get onboarded and become productive quickly. In fact, it may be a good idea to transfer some employees as part of the selling process to ensure business continuity and transfer of knowledge.
One must note here, though, that in case you intend to stay in the same business segment, then it may be detrimental to share all your business insights. While conducting the negotiations for your Shopify store for sale it may be prudent to have Non-Disclosure Agreements (NDAs) signed with your potential buyers to safeguard your business model and operational strategies.
Capital for Future Plans
The endgame for any sales process is to rake in the returns of your hard work and toil. But one of the foremost steps, here, is to determine what would be the right price for your business. Entrepreneurs are frequently caught in the anxiety of whether they are asking too high or selling their business for too low a price. It is judicious to carry out a formal business valuation before listing your Shopify store for sale. This can be done on your own if you have experience in selling businesses, or consult professional experts to help put value on your Shopify business for sale.
The business valuation process takes several factors into account. These include:
- Age of the business
- Type of products/services being sold
- Financial health
- Brand strength
- Traffic diversity
You should be aware of these and track them diligently in order to get the best returns from the sale of your store. In case you find a gap or an area of improvement, best to plug them first in order to achieve a higher valuation.
You should also have a well-defined exit strategy and a plan for the proceeds you will receive from your Shopify store for sale. You may have considered taking a long vacation, a sabbatical to study more, or invest in a new venture. While the reasons and objectives are uniquely yours, it is important to have a clearly thought-out plan to avoid the pitfalls many seem to fall into. This also includes a mutually beneficial plan for employees, staff, vendors, and suppliers. Especially, if you ever intend to work with them again.
