1. Timing & Reasoning – How To Sell My Business?
Selling a business is often a smart and common exit strategy from particular businesses.
There are plenty of situations when the respective managers no longer want to
continue, not to mention about their successors who may have different plans. At some
moment, turning a business into actual money seems to be the most appropriate
solution. In the end, it makes no difference what your reasons are. You just have to
follow some simple tips and strategies. So what is the best way to sell my business and
come up with a decent result after the transaction is over?
Timing is everything
Plenty of business owners choose to get rid of their businesses when they are no longer
able to care for them. Whether they get too old to do it or they end up with a severe
illness or disability, this is usually a common moment to put a business for sale.
However, most people have no clue how difficult this idea is going to be. When you are
pressured by time or other circumstances, any potential buyer will try to turn this aspect
into a serious disadvantage for you. Practically, you are pressured, so the other part is in
advantage. Therefore, you will have to face a series of counteroffers and harsh
negotiations. In conclusion, it is highly recommended to sell a business while it still
makes money. Never even think about waiting until the last minute.
Your reasons are just as important
The reasons wherefore you sell your business may not be extremely important to you,
but they will definitely draw the potential buyer's attention. Selling a business is like
selling a car, for example. You do not tell the buyer that you sell it because the fuel
consumption is huge. The same rule applies to a home. If it feels too small for your
needs, you obviously do not want the buyer to turn this aspect against you. Instead, you
may say that you are about to invest in a different domain or perhaps you are looking
for another opportunity. Moreover, if you are close to retirement, this is a very good
reason to get rid of a business.
In other words, your business must seem perfect, without any drawbacks. It is true that
some of your actual reasons may be irrelevant to the buyer, but a smart negotiator will
easily attack you with these statements. Therefore, you do not need to leave room for
misinterpretations and other similar ideas.
Conclusion
In conclusion, if you ask yourself how to sell my business, you obviously have to do your
homework before. There are plenty of other things to take in consideration as well. For
instance, you must make sure that you know exactly what you sell. The buyer must not
come up with locking or uncomfortable questions. Basically, you need a positive answer
for any potential question that may arise. Other than that, try to come up with some fair
estimations regarding the value of your business, not to mention about having
absolutely everything in order.
