Do you have a business concept, either still a concept, operational in the past and stopped, or still operational in the Philippines that you want to sell?
A relative is contemplating on selling their family business concept, the operation of which stopped for some years, and she sought my advice on what to do.
This reminds me of a business that I sold before to the father of my friends and former high school classmates (one of them married my former staff at the college publication). He was recommended by my college classmate who happened to be very, very close to him. Small world. It was a 'painful' ex-deal. I chose him, among three (3) prospective buyers because I was thinking that he could continue it successfully.
Setting up a business is like giving birth to a baby. That was my brainchild and I passionately molded it prior to transfer.
Selling a business concept in the Philippines can be a complex and variable process.
Here are some steps and considerations to help you determine the potential value of your business concept:
1. Market Research
Conduct thorough market research to understand the demand for your noodle-making concept in the target territory in Philippines. Analyze the competition, target audience, and potential growth prospects. The more data you have, the better you can justify the value of your concept.
2. Business Plan
Develop a comprehensive business plan that outlines your concept, market analysis, financial projections, and marketing strategy. A well-prepared business plan can add value to your concept and make it more appealing to potential buyers.
3. Intellectual Property
If your noodle-making concept involves proprietary technology, recipes, or processes, consider whether you want to sell these intellectual property rights along with the concept. This can significantly affect the value,
4. Scalability
Evaluate how scalable your concept is. Can it be easily replicated in multiple locations, or is it limited to a single operation? Scalability can make your concept more attractive to buyers.
5. Profitability
Potential buyers will want to know about the profitability of your concept. Provide clear financial projections, including revenue, expenses, and profit margins.
6. Unique Selling Proposition (USP)
Highlight what sets your business concept apart from existing businesses. A strong USP can justify a higher asking price.
7. Existing Assets
If your concept includes physical assets like equipment or a physical location, determine their current value and whether you plan to include them in the sale.
8. Legal and Regulatory Considerations
Ensure that your concept complies with all relevant laws and regulations in the Philippines. Any legal issues can significantly devalue your concept.
9. Seek Professional Assistance
Consider consulting with a business broker, financial advisor, or attorney who specializes in business sales. They can help you assess the value of your concept and navigate the sales process.
10. Negotiation
Be prepared for negotiations. The final selling price will likely be a matter of negotiation between you and potential buyer / s.
It is important to note that there is no fixed or standard price for selling a business concept, as it can vary widely based on the factors mentioned above.
Some business concepts may be sold for a few thousand pesos, while others with unique and highly profitable elements could command a much higher price. Ultimately, the value of a business concept will be determined by the perceived potential and profitability it offers to potential buyers in the Philippines.
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Image credits: Canva
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