Building your business took time, effort and a combination of carefully combining personal and work ethics. You have given it so much of yourself and now it is time to grow away from the one thing that has been a constant in your life day in and day out for a period of time. So what do you do? Where do you start? How do you go about it?
There are key elements you must consider as you are placing your business on the market. Just as much thought and calculation as you put into setting up your business, you must also not neglect some very important facets of getting ready to part ways with it.
Behind the scenes will now become visible
It is a well oiled machine. Your business functioned without any major flaws to the naked eye for sometime now and it appears as if all is in perfect order and ready to let it go. Or is it? Increase the value of your business and motivation of potential buyers by overseeing key areas and adjusting where needed be. Are your financial statements and reports ready for show time? Ensuring the accuracy of statements and reports is fundamental for the business transition. Also, keep in mind that the CPA firm you have been working with all along may be replaced by the one of the buyer’s choosing. Will your employees compromise the sale and functionality of the business once they know there will be new hands at the controls? A business is only as good as the people who are a part of it. It is imperative that you have built a team of employees who are loyal and that in turn will ensure the success of future endeavors. Are your contracts and arrangements with existing clients clear and legally prepared? It all must be conforming to state laws in order to the successful continuance of the business and to avoid any future complications in the wake of any misinterpreted arrangements.
It is about to get real
Make an honest and accurate evaluation of the present condition of your business. It is often easy to overlook any flaws related to the aspects of the business one has come to feel so personal about. It has been your pride and joy, and at the moment when you must part ways, it may be very likely to become defensive and perhaps even possessive on any ailments that potential buyers may bring to the table. You must be able to objectively recognize and accept such statements, all in the nature of a successful sale. Be properly analytical.
What’s on your menu?
Set goals for both the sale itself and afterwards as well. What is it that you expect to come from this transaction? A time frame, an amount and an exit strategy are key elements and a good place to start to ensure the effortlessness and success of the task at hand. Consider all facets of the offer and weight in all pros and cons. It may not be exactly what you were looking for but it may very well be a fair offer with simple terms and fast execution. After the offer has been accepted and you are moving forward, where is that you want to find yourself in regards to your business? Do you still want to be a part of it as an employee? Or are you letting go completely and moving on to a new industry, a new enterprise or simply going into retirement all together?
What it is you are really selling will attract who your buyer will be
Selling your business at a time when it may not be profitable will be a challenge hard to accomplish. And even if it is making profit and it is running brilliantly, put yourself in your buyer’s shoes, as they will come to your with an army of questions of their own. Be prepared and secure in your decision of selling, as hesitation may cost your potential buyers to walk away. Be assertive on your reasons for your departure, as they will have to be strong enough to make your potential buyer interested. Be willing to entertain the thought of several potential buyers lined up, as the process continues any of them may change their minds at any time during the transaction. And be ready to wait for the right buyer. It may take anywhere from six months to two years for the sales of your business. Plan ahead for the secure financial integrity of all aspects of your business as you wait for the offer that will make the transaction and your future prosperous and rewarding.