In the event you have designs on selling your business, how easy of a process would you expect it to be?
Selling a business can prove complicated and even frustrating if one is not careful.
With that in mind, what will it take for you to get the job done should you look to sell?
Have Your Financial House in Order
As you decide to put your business up for sale, here are three keys to think about first:
1. Financial house in order – Be as sure as you can that your company’s finances are in order. In the event they are not, it can make it rather difficult to proceed with sale intentions. That is because you will send off red flags to prospective buyers to start with. Knowing your assets and liabilities right down to the last dollar is important. Also make sure you know the true worth of your business. If you do not, you could end up getting less money for the business at the end of the day. If such a thing occurs, it could leave you with regret for some time to come. By knowing how to value a startup you began or selling a business you bought, you’re in a better position. That is to not get taken for a ride.
2. Will employees be in the mix? – Are you the company’s lone employee? If the answer is no, you want to think about the workers you have under you. What happens to them in a proposed sale is not something to gloss over. Their futures, ability to earn incomes and more are a big piece of the sales puzzle. As such, it is important to think about how a sale will impact them. You want to be as transparent as possible with your workers when looking to sell. Not only is this the right thing to do, it can lessen chances of their being any bad feelings among all you. You may look to include the employees in any sales agreement you would strike with another owner. If the new ownership takes on your workers should they agree to go, it can be the best outcome possible. The new management gets to have consistency in place with your former employees. In turn, any of the workers you have agreeing to go with new ownership get to keep their jobs.
3. Deciding what might be next – Finally, selling a business if all falls into place means a big change for you. That said do you have a good sense of what may come next? Even if a sale goes through, how long will that money last you that you’ll get? You want to be a sure you’re in a good financial position for the foreseeable future. So, have a game plan of what you will look to do once you no longer own the company now and down the road.
In looking to put your business up for sale, how do you think things will play when all is said and done?