As a business owner, you’ve likely put a lot of time, effort, and money into building your business. Now, you want to sell it. Why? There are all sorts of reasons. Perhaps you’re ready to retire or downsize. Perhaps you’re ready for a change of pace or just looking for a change of scenery. Perhaps you’ve found another business that you’d rather focus your time and energy on. Or perhaps you don’t have a business at all and can’t imagine going back to working for someone else.
Selling your business is a special kind of challenge. The details are complicated, the rules are new, and the process can seem overwhelming. But you can turn this challenge into a great opportunity. Read on to learn the basics about selling your business, how to best approach the process, and how to get the most money for it.
Selling your business is a scary, uncertain process. If you’re a business owner, the thought of giving away control of your company is a scary one. You can’t make life easier for yourself, you can’t make it more comfortable for your buyers, and you can’t make it easier on your employees if you’re going to sell your company. All you can do is be honest, accept what’s going to happen, and prepare yourself for what’s to come.
If you own a business, you know the stress and pressure that comes with it. But imagine if you could sell your business and start over, free of the stress and the pressure, and with all the money you’ve earned. That’s exactly what happens when you sell your business. So, what should you do before you sell your business?
Selling your business is a difficult process that may take time before you are out of the business. The buyers are keen on buying your business because they know that they can gain a lot of benefits if they acquire it. Before selling your business, there are some things you need to know about it.
Don’t sell it for too much or for too little
When a business owner is thinking about selling their company, they often have a vision of a couple hundred thousand dollars. However, that’s not the right amount to sell for many reasons. If you’re not familiar with the term, here’s another way to think of it: The right price to sell your company is the price that will cover all of your expenses, plus a little more. In other words, if you’re thinking about selling your company and you’re not sure what it’s worth, don’t sell for less than you need to live on and a little bit more.
There are many reasons why you shouldn’t sell your business for too much or too little, but none of them is as important as one that’s often overlooked: the price you’ll pay to unload your company. Although selling your business can be very lucrative, selling it for too much often turns out to be the worst possible outcome for your business.
Choose wisely when choosing who you’re selling it to
If you have a business, you have a choice of whom to sell it. It can be tempting to choose a company that has a reputation for being a good business partner, a large client list, a good location, a good value for your business, or any other reason that might reassure you about selling your business. While you might have good reasons for choosing a company, the only way to know if a company is a good match for your business is to get to know them.
Make sure to find legal and financial expertise
When selling your business, legal and financial issues are often the last things on your mind. But these are important to tackle before you put your assets in someone else’s hands. If you’ve worked with a business advisor or lawyer, you probably know how expensive it can be. But you may not realize that your business can be worth millions of dollars. Not all businesses are worth millions of dollars, of course, but some do, and some of those millions of dollars can be yours. If you want to sell your business, you might want to seek legal and financial advice.