The time has come to take that important step. You’re ready to sell. Or are you? See, the problem with this decision is, once the transaction has been made, there is no going back. There’s a lot to think about. Selling always sounds tantalizing. You know it involves a nice little bundle of money, and of course, this will elicit a positive reaction in most people. Still, then, more than ever, you need to remain focused and clear-headed. What if that bundle of money ends up being smaller than you expected, as you did not evaluate everything as thoroughly as you could have? What if that stack could be higher in a year or two? Let’s take a look at the essential things to consider before you sell your business
Potential Could be Your Potential Downfall
You’ve probably heard it often that the most important thing to have is a new idea. Something that hasn’t been done yet or maybe has, but you’ve been able to put a brand-new spin on it. Entrepreneurs owe their success to their ability to offer what the market wants but currently lacks. This is true, to a certain extent. See, maybe you do have a brilliant idea, and perhaps you have started developing this idea. Things are going according to plan, and you might think you are sitting on top of a gold mine. Another brilliant golden nugget of inspiration might hit you then – why should you do the digging? You found the location; plenty of mining firms out there will pay top dollar for you to point to where they should start excavating. Let me stop you right there.
You need to get into the buyer’s mindset and understand what they are interested in. In most cases, it’s not potential. It’s results. Putting a bit more time into developing and growing the business could pay huge dividends down the line. A helpful tip is to get business valuations so that you know the true worth of your company come sales day.
Money vs Emotions – Think About This Before Selling Your Business
You started your business to turn a profit. Nobody should be shy about that fact. The problem is, somewhere along the line, you know, all those buckets and buckets of sweat, tears, and blood spilled raising it all from the ground up got you emotionally attached. You read up on all the business tips, you did all the research, and you poured your heart and soul into it. No buyer will ever be able to understand or value the work you put in. For them, it is just another financial asset. Of course, it is, but emotionally, it can be hard to process. As irrational as it may sound, it can be a blow. Be sure you are ready for it. There is no need to rush things; listen to your gut feeling.
Once the business has grown sufficiently and you feel ready to sell, it’s time to draw up a plan of attack. Or, rather, as experience has shown, it’s time to call in some outside help to do just that. Engaging advisors could net you a better deal than negotiating on your own. Put together a good team, one you have faith in. Once they are formed, let them do their thing. Remember that emotional baggage we talked about? Yeah, you don’t want that getting in the way of the negotiation process. You cannot be objective when it is your business. It would be best if that team understands the firm but can also approach the matter with a cool head.
Essential Things to Consider Before You Sell Your Business? Remain Focused
This point is one that many miss out on. Let me ask you, during the months leading up to the deal, what do you think will be top management’s primary concern? What happens to business results when the head of the corporation is not focused on strategical aspects of the business but rather on selling it? Effects will inadvertently and unavoidably drop. What do buyers do when they see this? They have the perfect reason to ask for concessions and changes to the contract…in their favor, of course. We already talked about planning. What if you, ahead of time, divided the team up? One part would focus on the sale of the business, the other on making sure things functioned as they always did?
The Sale Was a Huge Success! Great…What Now?
It should be clear by now that you should have planned everything out before you decide to take this step. That includes what your post-sale goals will be. Where will you invest the money that you are expecting from the sale? A new business, or do you have some other financial goals in mind? Will you still retain a role in the old company in one capacity or another? Maybe you negotiated to stay on as an employee or have reserved a seat for yourself on the board. Be sure you have a plan.
Maybe you decided to get some new office furniture before the sale to help create an even more impressive image of your business. Perhaps part of the deal with the new owners is getting rid of the old stuff. Whatever the case, getting rid of office furniture is not as simple as it may seem at first glance. It, too, requires a bit of planning and understanding of what your overall goal is. There is a lot of good advice out there on how to dispose of some items that you do not need, so be sure to read up on it.
New Sunsets and Horizons Await
These are some of the essential things to consider before you sell your business. Once you have thought about it carefully and planned everything out, you can approach the matter content in the knowledge that you are making the right choice. Once the papers have been signed and the transaction is complete… well, a whole world of potential is just waiting out there for you. How exciting is that?