If you’re thinking of selling your business, congratulations! This can be a big step for many reasons. Perhaps you’re looking to make a lucrative profit from the sale, or you’re moving on to bigger, better, and greener pastures. Even if you’re selling because it hasn’t quite worked out, this is still a major decision and a positive step forwards. However, selling your business isn’t as simple as you might wish. The process can be lengthy and complicated, and you’ll have several considerations to make before it’s all completed. Here are a few of the important things to think about before you begin, helping you sell your start-up as smoothly as possible.
Why Do You Want to Sell?
Firstly, it’s vitally important for you to know clearly why you want to sell. Is it simply to make some money, because you believe the business has grown valuable? Is it because you have a better idea you want to pursue? Is it because the business has a flaw you cannot fix yourself? You need to have a clear answer because this is one of the first questions any prospective buyer will ask. Whilst you’ll want to present your business positively in order to sell it, you’ll also need to be honest, particularly about any flaws – it’s a legal requirement. Having your reasons straight in your own head will help you give a measured, helpful response.
Professional Services
Selling your business alone is a hugely complex and difficult process. You’ll want to consider using business brokers to facilitate the process. The benefits of working with a professional are multitudinous. They will be able to accurately and objectively put a value on your business, they will be able to advertise the business with a far wider reach than you can, and they will be there to protect you in the event of a sale and make sure you’re getting the best deal possible. If you want to sell as quickly and as profitably as possible, investigating brokers should be your first port of call.
What’s the Plan?
Once you’ve sold your business, what’s your plan? Do you want to jet off for a holiday in the Bahamas to celebrate the sale? Retire early? Immediately launch your next venture? Apply for a job in an already-established company? It’s important to take care of your personal plans before you start the process of a sale. Selling can take a long time, but it can also occur quickly and suddenly, so you don’t want to be left in the lurch without knowing what you’ll do next.
Admin to Take Care Of
As you sell your business, there are some important tasks you’ll need to accomplish. Before selling, you’ll need to settle any ongoing litigation or employee disputes, tidy up all outstanding leases and contracts, and organize up-to-date accounts that reflect the current state of the business. Reducing cash flow to the bottom line is also important. Finally, you’ll need to consider the impact of selling on any employees you work with, talking to them clearly and honestly about possible impacts and potential guarantees.
