There are several reasons to sell a business. Some business owners find themselves in over their heads, others may find themselves drawn to new ventures and yet others may be ready for retirement. Have you considered selling your business? Look at our tips on steps you should take before making the decision to sell your business.
Step 1: Why do you want to sell?
First, determine your reasons to sell. They can be positive or negative; however, it’s important that this decision is a carefully thought out one. Many business owners contemplate selling their business because of the time that running the business entails. However, make sure that the reasons behind choosing to sell won’t become miscalculations or regrets down the road.
Step 2: What will you do after the sale?
Many business owners find that the business encompasses much of their time, if not all of it. But, after investing so much time, money, and effort, it can be daunting to consider, “what now?”. Take time to reflect on what you will spend your time doing after selling your business – perhaps you will go on vacation, take on a job or pursue interests you have put aside for many years.
Step 3: Maintain confidentiality
It’s important to keep things as confidential as possible throughout this process, as to not scare stakeholders. Although this can be difficult, it is imperative for the benefit of your business and everyone involved, it is critical that anything that is not set in stone is not leaked.
Step 4: Consider how you will affect those that depend on you
Whether it is your employees, family, customers or even business partners, it is important to consider how this sale could affect the lives of those involved with you and your business. Take time to consider what this sale could mean for everyone involved, and what will happen to them once the sale is complete. Consider how you might break the news to them, and what can be done to make the transition as easy as possible for everyone involved.
Step 5: Make sure your financials are in order.
A successful sale could fall through if your financials are not in order before selling your business. Areas of concern include poor records, contracts with employees or even non-assumable debts.
Step 6: Get a business valuation.
One last essential consideration is getting a business valuation that can give you information about what your business is worth, how likely or quickly it can sell in the current market and what the projected sale may be. Getting a business valuation is not an easy task, as there are several components in valuing any business. This task should be handled by professionals.
Don’t attempt to sell your business alone. Contact the expert team at Transworld Business Advisors of Houston. We offer the best brokers and services available and ensure that your sale will be handled with expertise and professionalism. Call us todayto discuss the sale of your Houston area business.