No matter how long you have owned your small business, you may reach a point where you decide it is time to sell. With that idea in mind, what steps must be taken so that a prospective sale comes off as smoothly as possible?
Remember, the last thing you want is a lot of headaches in trying to say goodbye. That is to your business and move along to something else in your world.
Do Your Homework Before Opting to Sell
In deciding now is the time to put your small business on the market, here are a few pointers to help you out:
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Finances and papers in order
One of if not the biggest roadblocks to a sale is if the money and paperwork are amiss. That said sit down and go over your business finances. You want to make sure everything adds up. If it does not, you have more work to do. This means looking into any sizable business debts, tax issues, and the like. Also, make it a point to have your paperwork all set to go. This will not only help move things along, but it also makes you look more professional to buyers.
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Know what you are eligible to get
Another thing you can’t overlook is the value of your small business. The last thing you want is to get taken advantage of when you go to sell. That is why you need to have your small business assessed. Not only do you want to know what it is worth, but also what comparable businesses are worth. These would be those that are currently up for sale in the marketplace.
If it is a Software-as-a-Service (SaaS) biz, having a SaaS valuation calculator is great. You can have a better understanding of what your business is worth. If you have friends in this industry and they’ve sold or have their companies up for sale, tap their brains.
Find out how they’ve gone about a sale. You could pick up some good tips that help you end up getting what you truly deserve for all your hard work.
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What happens to the employees?
Unless you’ve been operating a business on your own and have had no workers, you have to think about your employees. How will a sale impact them now and down the road? If planning on another business, would you consider offering jobs to current workers? If not, you at least want to give them as much notice as possible of the pending sale. That gives them an opportunity to look for other work. The hope is they do not miss a beat when it comes to getting a paycheck.
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Deciding what is next for you
You may have already decided what is next in the cards for your career. If so, the hope is everything falls into place. If you do not have concrete plans, take some time to think things through. You may decide another small business venture is what you want. You could decide you want to go work for someone else. Still yet, you may be contemplating retirement at the end of the day.
In deciding it is time to part with your company, how will you go about it?
Interesting Related Article: “3 Tips on Selling Your Startup Business the Right Way“