When you have owned a business for a while and have thoughts of selling, will it all fall into place as you want it to?
There is no doubt that selling a business is a big step in one’s life.
That said you want to be careful to cover all your bases from start to finish.
With that in mind, what steps will you need to take when you hope to sell your business?
Have Your Financial Affairs in Order
If the time has come where you want to part ways with your business operations, here are three tips to consider:
- Make sure finances are in order – The big key is to be sure your financial affairs are in order. On the one hand, you want your company finances looking as polished as possible. That means for one you do not have any major business debt hanging over your head. Such debt has the potential to scare away some prospective buyers. You also want to be sure you research any prospective buyers you deal with. Making sure they have the money to buy your company and without any issues will be key too. Also look to see if there are any legal issues that could thwart a sale. That is on both your end and someone interested in buying the company.
- Who else may be involved? – Do you have employees at your operation? Are you the sole owner or part of a team of owners? If answering yes to one or both those questions, know that you have some more to think about. When workers are in the mix, it is important to keep them up to speed with what is going on in a potential sale. Not doing so would be unfair to your employees. Could they be part of the sale and work for new ownership? If you are opening a new business, would you consider offering jobs to your current team? In the event you are but one owner of the company looking to be sold, know you must have input. That is from the other owner or owners. By working together with others involved in your plans, you look to come to terms and avoid any drama.
- What comes next for you? – Of major importance will also be deciding what is next for you? Do you have another business lined up that you will oversee? Any chance you will go to work in the corporate world? Could retirement be in the works for you? By having a good sense of what you will be doing next, you can avoid a lot of unwanted stress and uncertainty. The hope is you have taken all the time needed to map out your next move. You want to be sure finances are not going to be an issue. That is especially the case if selling your business at a later stage in life.
As you think about selling, the hope is you had a successful run as an owner and are ready to move along.