What to Do Before Selling Your Business
Selling your business is a big decision and it will take a lot of preparation work. There’s plenty you need to do to get your business ready to be sold and to ensure you will have somewhere to go once it’s sold. If you prepare well, you can see better end results.
Look For and Address Any Problems
No business is perfect and it’s important to recognize that early on. Once you’ve decided to sell your business, you need to review it thoroughly. It’s much better if you identify problems yourself and fix them than if your buyer finds them later. Major problems can prevent a sale from going forward or they could lead to a cut in the sale price. Take time to evaluate your business and find any existing problems. Having a team help with this will allow you to cover more ground and gather a wider range of perspectives. Once you’ve found issues, make your best effort to address them so your business can be performing at its best when you sell.
Keep Your Business Running Until the Sale
A mistake that many business owners make is focusing more time and energy on the sale than on the actual business. They are dedicated to making sure the sale goes through and that the process is smooth. However, this can lead to their business declining. You then end up selling a poorly run business to your buyer. This is a major reason to hire a broker who can focus on the sale while you stay focused on running the business. As the sale is going on, make sure a large portion of your team is still dedicated to operating your business. Make sure it is performing as it should and continuing to do well. Your buyer wants your business for a reason, so make sure they get the business they originally signed up for.
Make Yourself Invisible
One of the most important things a business owner can do in preparation for a sale is to delegate the majority of their responsibilities to the team. The owner can still actively participate, but the team should be capable of handling all aspects of the day-to-day in preparation for the port-sale transition.
Have a Post-Sale Plan
Again, many business owners are more focused on the sale going through than anything else. While it is important to ensure the sale goes well, you also need a plan for yourself. Once your business is sold, you need to know what your next steps will be. Perhaps you’re starting a new business or you’re beginning a new job. You may even be retiring. Whatever your situation may be, you need to make sure you have a plan for what will happen to you once your business is officially sold.
Selling a business is a complicated process and you want to make sure you do all you can to prepare. During this time, find a way to balance your priorities between the sale, your business, and also yourself.
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