So, you’ve decided it’s time to part ways with your business.
Whether you’re eyeing retirement, a new venture, or just a change of scenery, selling your company is a big step!
To make sure you ace this pivotal moment, I want to walk you through a quick roundup of a few of the best practices I’ve learned from working with my 8- and 9-figure clients selling their business:
TIP #1: Start Early and Lay the Groundwork
Preparing for the eventual sale of your business should be a long-term strategy, not a last-minute scramble.
The process can take years, so think about your exit plan well in advance.
Even if you’re not sure when you’ll part ways with your business, setting the stage early gives you a massive advantage.
Know the Value of Timing
The right timing can significantly impact your business’s sale price.
Starting early allows you to pick the perfect moment to sell.
You can strike when your business is at its peak, showing strong financials and a promising future.
Rushing into a sale might force you to accept a lower offer just because you’re in a hurry.
The longer you prepare, the more opportunities you have to enhance your business’s value.
You can identify and address weaknesses, fine-tune your operations, and demonstrate consistent growth to potential buyers…. and this can mean a much higher sale price when the time comes!
Explore All Exit Options
Starting early gives you the chance to explore all your exit options.
You can consider selling to a competitor, a financial buyer, or even passing the business on to a family member.
Understanding these options and their implications takes time and careful planning — early preparation allows you to set these clear goals for your exit.
You can define what success looks like for you – whether it’s achieving a certain financial target, preserving the company culture, or ensuring your employees are taken care of.
These goals will guide your exit strategy.
Seek Professional Advice
Selling a business is emotional!
It’s like saying goodbye to a beloved chapter of your life.
Starting early gives you the time to mentally prepare for the sale, address any hesitations or fears, and ensure you’re ready to let go when the time comes.
And preparing for an exit isn’t something you should do alone.
Seek advice from professionals who specialize in business sales, such as financial advisors or business brokers; they can provide valuable insights and help you navigate the complexities of selling a business.
Document Everything
Over the years, your business has likely accumulated a wealth of knowledge and processes.
If you haven’t already, document everything meticulously.
This not only helps in the sale process but also ensures a smooth transition for the new owner.
It’s all about making your business as attractive as possible to potential buyers, right?
So lay the foundation for a successful business exit.
Give yourself the time and resources to make informed decisions, optimize your business’s value, and transition with confidence when the moment is right.
Remember, a well-prepared exit is a lucrative exit!
