So, you have made a very big decision. You have decided that you want to sell your business. Owning a business takes a significant investment of wealth and effort from an individual, so it can be a tough choice to make. When you have selected this path, you may be confused on what to do next. Luckily, we have extensive experience in all aspects of the business selling process. This includes a deep understanding of the preparation needed.
Tip # 1 Be Sure on Your Reasons!
The first step that should be taken is to ask yourself why? Why do you want to sell your business? Selling a business is a life-changing event. That’s why it is important to identify why you are choosing this path.
Over the years, we have brokered hundreds of business ownership transfers. This experience has given us a knowledgeable perspective on knowing if you are selling your business for the right reasons. For example, we would consider selling your business because it is not performing well to not be a strong reason. This is mainly built on the understanding that if a business is struggling, it will be much more difficult to sell and or receive a fair price on.
Tip #2 Know Your Value!
The best single piece of advice we can share with you is that you must understand the true value of your organization. It is the basic starting point of any plan to sell your business. If you do not know the value of your organization, how can you expect to get a fair payment for it? Therefore, going through a thorough evaluation process is a necessity.
This valuation process will be based on the measurement of several factors. They will include current assets/liabilities, the potential for future earnings, company structure/leadership, industry, competitors, selling point, and other variables.
Tip #3 Timing is Everything!
Our next piece of advice is to consider timing and begin preparations as soon as possible. The time you choose to sell your business can have a major impact on how the selling process will go. For example, in economic downturns, it will be much more difficult to sell a business. Therefore, we would recommend preparing right away and gathering all the needed materials for the transaction in advance. This will allow you to pick the ideal time to sell for the most profit and ease.
Tip #4 Don’t Check Out to Soon!
When business owners make the choice to sell, they think this the time to begin distancing from direct management. This is false. Now, more than ever, you must be involved in leading your organization. This is because if you do not continue operations and or establish a strong succession system for leadership, your company could risk losing value. This in turn will make it harder and less profitable to sell.
We want you to focus on running your business and preparing for your next phase, utilizing a business broker will enable you to focus on what matters most. The Liberty Group of Nevada is prepared to guide you through all aspects of selling your business. This includes the evaluation process, research into when the prime economic time to sell is, and assistance in procuring all needed materials to sell your business. Call us today at (775) 825-EXIT (3948).