How much do you enjoy being a small business owner?
The hope is you do like the work and want to continue in such a position.
That said there is also the chance you want to move on from your business before too long.
If such a thing is going through your head, how best to go about making that happen?
From the asking price to what you get if you sell to other pieces of the puzzle, you will have a lot to think about.
So, will you decide now is the time to sell your small business?
Will You Get Price You Seek?
In deciding you may want to move forward with a sale, keep these three keys in the back of your mind:
1. Sale price –
Knowing exactly what your business may be worth can be a little tricky for some owners. That said you do not want to get much less for your company than its true value. With that thought in mind, do all you can to narrow down as close as possible what the company is worth. That means looking at both your company assets and liabilities among other things. You also want to look at what it is someone could buy your business for. Do your research to see how and when you would get the money you deserve for your company. This means you have a good sense of earn out deal structure and other financial indicators. At the end of the day, you worked hard running your business. As a result, you want to get rewarded for it when it is time to part ways.
2. Customer base –
Depending on the type of business you have, you might have a sizable customer base. Even if it is not large, you still want to do right by your customers. Keep in mind many of them have been by your side over time. That thought in mind, keep them in the loop when it comes to your sales plans. This will for one lessen chances of any bad fallout between you and them should you opt to sell. You might also look to cut prices as you wind down your business dealings. This can spur some of your customers to spend more with you as you look to sell. Also think about your business future. If you decide to open another business, you may look to some of your current customer base to help support it.
3. Next on your agenda –
Finally, if the sale goes through, what might be next on your agenda? Mull over the options so you have a better sense of what may be coming your way. One thought is you may look to own another company. Another possibility would be going to work in the corporate world. Doing this can take pressure off you not having to make all the big decisions. Still another thought depending where you are in life would be retirement.
When you are looking at selling your business, are you excited about what may happen?