Things you need to do when selling your business
You may think that selling your business isn't something that you even need to consider but you would be wrong. All business owners must be educated about the ramifications of selling their business. You may be surprised to learn that selling your business is just as important a step as establishing it. The way that you go about selling your business can often determine if this will be your crowning success or if selling your business will wash away all of your hard work. Because there are so many ramifications when selling your business it is important to do it right. Here are some things that you need to do when selling your business-
- Find the right person to represent your company-Once you have made the decision to sell your business then you need to find the right person to represent it. You need to take your time and research any broker or consultant that you are considering hiring to sell your business. You should never just go with the first person you meet in order to get the process started. Keep in mind that like every aspect of your business you should invest the proper amount of time and effort to find the right person. Take the time to interview several different business brokers so that you can be come familiar with their selling methods and experience. You want to make sure that work with a broker who has the expertise and experience to get the right potential buyers looking at your business.
- Sell at the right time-There is a window of opportunity for every business. You want to make sure that (if possible), you are selling at the right time. If you don't plan the sale of your business in advance or wait to long you may miss that window. Keep in mind that it can take even years to sell a small business. In order to have a successful business sale you will need to focus on having a long term plan. You want to make sure that you are keeping a business history that is very detailed, updated records (especially sales), and current human resources files. Remember, that you never know when the perfect buyer will walk in the door and make you that offer that you simply can't refuse.
- Ask the right price-You will mostly likely feel a deep emotional attachment to your business especially if you have invested several years of hard work getting it up and running. However, keep in mind that your potential buyer will only see a business opportunity. You need to price your business so it reflects the best business opportunity for potential buyers. If you set the price to high you will most likely be left waiting for buyer that won't every come. You also need to carefully and realistically consider the current and potential profitability of your business. Take a look at your industry as a whole, your competition, the economy and the market conditions where you do business before setting a price. This will help you to keep from setting the price to high or to low. You should also avoid setting the price to low and not let other emotional factors guide you in determining the price. If illness, death, or some other emotional event is forcing you to sell your business you need to try and put the emotions on hold and get the advice you can about setting a price for the business. Consulting with brokers, your attorney, and other financial professionals can help you determine the right price for your business despite any other extenuating circumstances.