As an entrepreneur, you may own and run many businesses, and that’s a good thing. However, while building up a business from nothing is admirable, there can come a time when you know that it’s time to sell. There are many reasons you may choose to sell, but the important part is to do it right and make the most out of the opportunity. Selling your business is a big step. To guide you, here are several tips from Premlall Consulting that will make the process simpler so you can sell with confidence.
Know When It’s Time to Sell
Before you even begin to consider the details associated with successfully selling your business, you need to know when it may be the right time to let go. There can be many reasons to want to sell and it could be as simple as having a lucrative opportunity present itself that is just too good to pass up. If you can move to a bigger business and make a profit off your existing company, then it’s a win-win!
It may also be a good time to sell if you no longer enjoy the work, you do or you are losing sleep due to the amount of stress you deal with each and every day. When you are stressed at work, you are not only harder on yourself but you could also take it out on your employees, which is a situation you want to avoid. If the business isn’t working out for you, consider selling it to someone who may be a better fit.
Another reason to sell may be that you simply have outgrown the business, and you are looking to expand your mind and skills. If that’s the case, consider returning to school for your master’s degree. Doing so will allow you to learn about new management skills, understand the other types of businesses out there, and gain great real-world experience. Selling your business will give you the funds and time necessary to give school your full attention.
Before you go out to find a buyer, you need to prepare and set yourself up for the best potential outcome. The first step is to determine what your business is worth. Do this by listing all of your assets and add to that the revenue you make on an annual basis. You can also complete a cash-flow analysis to project how much your business may be worth in the future. Compile all of this information into your financial statements.
It is also a smart idea to develop an executive summary of your business that will summarize how your company operates, how your management team maintains efficiency, all products and services that you sell, and any advantages your company has over the competition. This summary is a great selling tool.
Initiate the Selling Process
Now that you have the facts and you know how valuable your company could be to a potential buyer, it is time to put your plan in motion. If you have never sold a business in the past, then consider hiring a business broker to assist with the sale. They have an understanding of the market, and they will work to find the best price and sell your business in record time.
Understand that hiring a business broker will not always be cheap as the cost of hiring a professional will often correlate with the value of your business. Prepare to hand over a 10-12% brokerage fee on average.If you decide to sell on your own, you can find buyers by researching online marketplaces and reaching out to individual parties to discuss details. You could also research your local area for companies that are looking to expand and find a time to meet with them to discuss the details.
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