How Do I Sell My Business?
As a small business owner, the thought of selling your business might feel overwhelming. But fear not! Exit planning can make this process smooth and effective. Whether you’re looking to retire, pursue new ventures, or simply cash out, understanding the nuances of small business sales can significantly impact your success.
Steps to Prepare to Sell My Business
Firstly, before we talk about “How do I sell my business?”, we need to talk about “How do I prepare to sell my business?”” It’s not just about slapping a ‘For Sale’ sign on your door. This phase involves serious evaluation of your assets, financial records, and operational efficiencies. Getting a business valuation can provide insight into how much your company is worth, allowing you to set realistic expectations. After all, you want to maximize that return on investment!
And don’t fool yourself – preparation is hard. However, just like selling a home, doing all of the repairs and prettifying (an official industry term) will take time and money, but will pay off down the road.
Timeframe Expectations
A common question among business owners is, “How long will this take?” The answer can vary widely, but having a solid exit plan can shorten the timeframe. Typically, preparing for a sale can take anywhere from six months to a handful of years. It’s all about the work involved — from fixing financial discrepancies to improving your business’s market appeal.
Most business consultants don’t want to freak you out with this, but the average business takes 3 years to maximize the sale valuation. It’s work that gets done while you’re running the business, so it can take a little longer. And almost 0% of the businesses I’ve seen are operated in such a way (more for the owners’ benefit than for a valuation – and they’re almost directly opposed to each other) that they can get a good price if they sold today.
So, if you’re asking yourself, ‘When should I sell my business?’, remember that planning ahead pays off in the end.
No responses yet