Selling a business is a complex, emotional, and often stressful process. You’ve dedicated years of your life to building your business from the ground up and making it the best it could be, so it’s disheartening when you struggle to find buyers willing to pay what your business is worth. We have put together this list of tips to help you prepare for the process of selling your business to help you get the maximum value out of the sale and cope emotionally as you bid goodbye to your brainchild.
1) Know Yourself and Your Business
Knowing your business and yourself is the first step to a successful sale of your company.
In order to get the best price for your business, you need to know what your strengths are as an entrepreneur and be able to answer all questions about how you have built up the revenue of the company.
You also need to know what kind of person will fit into this new role, so there is a smooth transition when they take over from you. This means being honest with yourself about any weaknesses in either yourself or your business that buyers can use against you – it’s better for them to find out before buying than after.
In addition, knowing who would make a good buyer will help narrow down those interested parties and avoid wasting time on people who aren’t right for your business.
2) Get Your Accounts In Order
You will need to prove to prospective buyers that your business is profitable, and this means getting your records in tip-top shape. If you’ve been slack with your accounting and bookkeeping over the years, it’s time to tighten things up to present the best possible case to potential buyers. You need to prove not only that your business is profitable now, but that it has the potential to go even further in the future.
3) Have Realistic Expectations
In an ideal world, a buyer would swoop in and offer you an eight-figure sum for your business. Unfortunately, however, you have to be more realistic with your expectations. It’s important to know exactly what your business is worth so that you don’t undersell it but don’t set your expectations too high, either. It’s a good idea to use a business appraiser or broker if you are struggling to price your business to ensure that you get the sum you deserve.
4) Freshen Up
It’s also important that your business looks good before you try and sell. This not only means making sure that your brick-and-mortar premises are in good condition but also your online presence, including your social media profile and website. Web design, for example, is very expensive and time-consuming, so potential buyers won’t want to see an outdated site that they will have to spend thousands overhauling.
5) Keep Your Staff in the Loop
When selling your business, it's important to keep your staff in the loop. They will be affected by the sale and need information about what that means for them and their jobs. You should make sure you have a plan for how each employee should proceed after the sale. This may include severance packages, retirement plans, or even relocation assistance if needed.
6) Take Time for Yourself
Last but not least, remember to take some time for yourself during the process. This means getting away from your business, no matter how much of an emotional connection you have with it. It’s difficult to be objective and make rational decisions when your emotions are running high, so remember to give yourself a break and take a step back every now and then.
Summary: Preparation is Key
You’ve likely heard the saying, “fail to prepare and you shall fail.” This is certainly true when it comes to selling your business. Failure can be a very unpleasant experience that includes getting less than what your company deserves or having buyers fall out of interest because they feel like it takes too much time and effort. However, if you think about selling in advance and plan accordingly, there are many benefits: increased revenue, more buyer prospects, less work, and more offers. The further in advance you plan to sell your business, the better the outcome will be.
We hope you enjoy reading this article, if you want to get in touch with us and learn more, please email us at info@bookmetricsfs.com or call us at (08)6383 7938.