Is Selling Your Business The Right Choice For You?
When a small business owner is considering the sale of his or hers business there can be an extensive search to find answers regarding the process. Before one finds the answers or proper information as it relates to the sale of a business, you must know the questions to ask. Most small business owners are not born with the knowledge on how to sell their business. Furthermore most small business owners have not sold a business before ,therefore gaining knowledge and information on the best way to sell their business is essential.
Again each business is different and each business owner and business owner situation is different, but below please find a list of questions to consider that may be helpful in the process of selling a business.
Are Your Ready To Sell Your Business?
Are you ready- Are you emotionally ready to sell your business?- Almost 20 years ago when approached about potential buyers looking to buy my business, I asked my CPA for his advise which I followed and still subscribe to today. He told me “You will know when you are ready”. I tell those I advise today if you wake up one day and think its time to sell your business- take some time and reconsider. If you wake up 30 days+ in a row feeling you want to sell your business- then maybe its time to sell your business.
Is Your Business Ready?
Is your business ready for you to sell your business?- Are your financials in order. In other words do you have accurate financial records that are both accurate and understandable. Do you have systems and or policies and procedures in place and documented?
What Is Your Business Worth?
What effect does the amount of money you would get from the sale of your business have on your decision. Is it your complete retirement money? Is it enough to allow you to exit to pursue your next venture? What is the difference between what you need the value to be and the actual value.
Getting Others To Help You Sell Your Business
DO you hire a business broker to sell your business? Can your CPA or your attorney sell your business? Can you sell your business yourself? I am a business broker and sold my own business and also purchased multiple businesses as a business owner. Yet after the sale of my business I chose to be a business broker as I recognized the value and confidentiality a business broker can provide. Furthermore most business owners are busy running their businesses before they add they task of trying to sell their business to their work day.
Should You Improve Business Before You Sell It?
DO you buy that new truck? Do I spruce up the inside of my stores? Do I hire that new employee?
I always advise business sellers to run the business as you will own the business for the next five years. There is a chance the business will not sell or take a long period of time. Continue to make your business better and attempt to add value. Certain Capital expenditure should be carefully weighed, but continue to try to improve your business.
How Long Will It Take To Sell Your Business?
It seems that typically it will take longer for a business to sell than a business owner may originally think. I suggest the 1 year time frame as a guideline but again all businesses are different and asking price for a business can strongly influence the time it takes to sell a business.
My Personal Advice When Selling Your Business
Every business is different and every business owner and business owners situation is a little different. But there also is some commonality shared. My perspective on this matter is that of one that has started a business, personally purchased several businesses, sold my own business and have helped others buy and sell businesses.
I understand and respect the decision of selling a business is a very important and complex decision and process. It is NOT all about the money. The sale of a business involves multiple facets including price, emotions, financing, lifestyle, families and personalities.
When considering if it is time for you to sell your business spend some plenty of time seeking some answers, but begin with the questions most important to you.