Start with the plan
You’ve planned throughout your small business career. Don’t stop now. Here are some things to consider to help you get top dollar for your business.
What's your business worth?
It’s easy and understandable to think your business is worth way more than the market price. After all, you may have poured years of your life building it into what it is today.
You need to apply some objective thinking when evaluating your business. Balance sheets and Profit and Loss statements are great places to start. While you’re at it, make sure these important documents are in order. They’ll be the first things prospective buyers will ask for.
Your personal and business bank accounts should be separate. It helps to create a clear picture of your business’s financial history. And nothing soaks up an accountant’s time and your money faster than trawling through statements to find your business-related transactions.
You can also look at how competitive your market is, how many customers you can hand over to a new owner, even your Google rating can add or subtract value.
Image is (almost) everything
Whether your business is bricks and mortar, mobile or online, make sure it looks a million bucks if you want a sale price to match.
Just like selling a house, a bit of effort in the presentation can result in big gains for businesses for sale. So, clean and tidy your premises and vehicles. Make sure your website is up to date. You can even work to increase your social media following in the months leading up to the sale. It means greater exposure when you list your business for sale and a ready market for the new owner to tap into.
Inform your staff
Once you’ve made your decision to sell your business, let your employees know of your intention. Uncertainty is one of people’s biggest stressors, so keep them informed at every step.
Call in the experts
At some point in running your small business you had to wear every hat - customer service, logistics, marketing, finance...
Now you’re coming to the end of this chapter in your small business career, go easy on yourself, call in the experts.
Consult your accountant to help you decide on a reasonable price for your small business.
Talk to a handful of business brokers or agents to discover what the market is like in your industry and in your area.
And speak with your solicitor to make sure every ‘i’ is dotted and every ‘t’ is crossed in your contracts.
Seal the deal
When you've found a potential buyer, it's time to negotiate. Reaching an agreement on something as complex as a business can take longer than haggling over a house. Don't rush the process.
When an agreement is reached, your agent or broker will work with your solicitor to create the contracts and share them with you and the buyer. Some contracts can contain a handover period, time you spend training the new owner on the intricacies of running your (former) business.
Having second thoughts?
Other than withdrawing your business from sale, you may have other options open to you.
Could you pass on the business to a family member or a trusted employee? Or partner with another business or merge to breathe some new life into both businesses?
Selling your small business is a big decision, but it doesn't have to be a daunting one.
Follow your plan and soon enough you’ll enjoy sailing into the sunset for your next adventure.
For everything you need to know about running a successful business, visit our online Business Hub.
