5 Simple Steps to Selling Your Business
There are 32 million businesses operating in the United States.
While there are ample articles online that describe how to go about joining the ranks of those millions of organizations by starting a business, few touch on the ins and outs of selling your business. That’s a shame because many people that build successful ventures choose to move on and use the successful sale of their companies to catalyze their next venture.
Our team is here to fill that how to sell a business informational void by providing you with a quick overview of the steps you should take if you’re trying to get cash in your pocket and your company off your plate.
Keep reading to learn more!
1. Start With the End in Mind
The people that start their business with an exit strategy in the back of their minds are the ones that transition out of their organizations the best. That’s because smooth exists require long-term planning.
For example, if your strategy is to be able to leave your business seamlessly, who works under you that’s prepared to assume day-to-day operations under new ownership? Can your company run at 100% without your involvement?
Lay the groundwork when it comes to people/triggers so you can leave your company on your terms.
2. Deduce Your Company’s Market Worth
In order to sell your business, you have to have a price in mind. Rather than just coming up with a number that makes emotional sense to you, conduct a valuation that allows you to arrive at your company’s fair market value.
An easy thing to consider when evaluating your company is how much profit it turns on an annual basis. You’ll also want to weigh the equipment you own that can be liquidated, and unique market positioning that might prime your business for future growth.
3. Give Your Sales a Boost
Nobody wants to buy a business that is showing a downward or flat sales trajectory. To get your company looking its best pre-sale, give your revenue an adrenaline shot. That way your numbers look rosier than they might ordinarily.
An obvious way to achieve that end is by running promotions or by coordinating a product launch with your company sale.
4. Work With a Broker
Business brokers are invaluable when it comes to selling your business as they help you find buyers, ensure that your business has been valued correctly, and get documentation in order.
While there are a lot of business brokers out there, finding the right one can be a challenge. As you look, pay special attention to brokers that excel in your company’s niche. Also, look for brokers that deal with companies your size.
5. Assess Paperwork and Sign When Ready
You’ll eventually get to a place in your business sale process where you’re confronted with final documents that require your signature. Take your time when you arrive at this point.
It can feel overwhelming when signing away your business. Questions regarding your future, how financials will be transferred to new owners (as you can see here regarding medical practices), and more might bubble to the surface, all at once.
The more mental space you give yourself to assess your deal’s terms, the more validated you’ll feel when you finally close your sale.
Selling Your Business Takes Teamwork
Never underestimate the value of the people you surround yourself with when selling your business. Whether it’s a talented broker, a willing senior manager, or a supportive family member, your group of helpful individuals will do wonders for you.
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