Planning on selling your business? We are here to help you get started! Here are some important tips to keep in mind when selling your business.
1. Think of your company’s resale value.
The ultimate goal is a high-value sale. The business is worth whatever you think it’s worth, based on the criteria you set forth. But you can make your estimation by using several different ways to value the business and then choosing the mix that reflects your final value estimate. It is extremely important to keep all of your bookkeeping records organized. Take the time to accurately track expenses and correctly categorize them. If you can maintain clean accounting records, you’ll automatically be positioned for a more successful sale.
2. Train your employees to work well with or without you.
Reliable employees are necessary for executing tasks, handling problems, and alleviating some of your stress of workload overall. However, they are also important for improving resale value. Chances are, your company will most likely forge ahead without you after you sell. A buyer most likely won’t be replacing every employee; therefore, you need to make sure that every employee is well-trained and can fulfill their responsibilities, whether or not you’re there managing them. This type of employee organization is particularly appealing to potential buyers because it will alleviate the training they will have to do after the acquisition and make any employee changes down the road easier to manage.
3. Learn how to know when you should sell your business.
The most crucial ways you can evaluate your business are through profits and revenue. Steady growth in these areas — whether or not you’re breaking even or bringing home a positive cash flow — will show signs of a successful business model, products, and services. Once your company is demonstrating consistent month-over-month revenue growth, you’ll know that it’s a good time to sell.
4. Figure out how to say goodbye to your company.
What your role will be after you sign on the dotted line? Regardless of whether or not you remain at the company after the sale, your role will not be the same. It can be difficult to turn off the special connection you might feel with the company you worked so hard to get off the ground. Remind yourself of all the objectives you have achieved, such as certain growth indicators, revenue achievements, and even the simple fact that you are selling your company. Relish in your feats, prepare yourself for a change in power, then take some time off to rest and brainstorm your next entrepreneurial idea.