As one of the leading agricultural suppliers, it’s no surprise that the United States is experiencing a healthy and growing agricultural market. In the U.S., there are over two million farms exporting 144 billion dollars worth of goods, making it a staple in the global agricultural economy. As farms grow in revenue, they require increasingly more supplies to increase exports accordingly.
So it’s not surprising to see that as American agricultural exports continue to grow in revenue, so do the stores that supply to them. By 2017, the Farm Supply Stores industry grew 2.6 percent for a total of $14 billion dollars in revenue.
Buyers consistently strike while the iron is hot, or in more plain terms, consistently look to buy businesses at the height of their success. Which is why if you’ve considered selling your agricultural supply business in the past, now is a great opportunity to do so.
However, this industry is complex and significantly dependent on region, so it’s essential to thoroughly prepare to find the right buyer and get the right price. Below are essential guidelines you’ll need to follow in order to get the most out of your beloved business.
Do the research before they do
Any prospective buyer will do their fair share of homework before contacting you or making an offer. Before you officially put your business up for sale, consider what a prospective agricultural supply business buyer would want to know and conduct thorough research of your market accordingly. Buyers will likely look into regional crops and livestock, local farming operations, pest management programs, and more in your area.
Ensure you have product lines and available services to meet all needs. Then, when a prospective buyer does the same research, you’ll have everything available to prove that no further work needs to be done to meet your market’s needs.
Prepare your staff
The agricultural industry requires extensive expertise and experience. Prospective buyers new to the industry may be easily intimidated and scared off if they feel they aren’t well-versed in handling product decisions, customer service questions, or distribution channels.
You can diminish this fear by providing buyers with a team of experts who can not only guide them through important decisions, but take the day-to-day responsibility off their hands. Agricultural supply stores carry a wide variety of products from gardening supplies to home improvement products, and it’s important your staff is educated in all products that you offer.
Ensure each member of your staff has subject matter expertise in a primary business area like gardening supplies, livestock feed, and other common farming product lines. Even if a prospective buyer is knowledgeable about the industry, having a prepared staff will make the ownership transition easier and can be a major selling point for buyers.
Selling a business requires work and exceptional due diligence. Between screening prospective buyers, compiling paperwork, and advertising your business, the entire process can feel overwhelming. To make the process as efficient, profitable, and easy as possible, enlist the help of an accountant, business broker, and attorney to handle the details that go into selling a business.
Every prospective buyer will want to see three years’ worth of business records. Expect a thorough inspection of your business and expect ongoing negotiations. While some business owners choose to handle these processes alone, enlisting a team of experts will ensure that nothing falls through the cracks and that you get your best price possible for your business.
Advertise to your audience
While agriculture is booming overall, the agricultural supply sector is still a niche business industry. You’ll have the most luck finding the right prospective buyers if you target your advertising to people interested in your industry. In addition to standard entrepreneur events and publications, advertise your business listing in applicable magazines, at farmers co-ops, and at farm-to-table restaurants in your region.
These places are more likely to have interested buyers and will give your business the extra publicity it needs for a successful sale. Your business broker can also help identify opportunities for advertising if needed.
Selling an agricultural supply business has its own unique challenges, compared to other businesses with less of a learning curve. However, if you and your staff do your research and enlist help when needed, the selling process will be easier for both you and your prospective buyers. For more advice on the agricultural industry or on selling your business, trust BusinessesforSale.com for expert advice in all things business.