All good things must come to an end. Whether you built your business from the ground up or took charge of its growth at a later stage, the decision to move on is a major one.
There are a lot of steps involved in the process, and it can be a surprisingly taxing and emotional journey to embark on. This is a big strategic move that will impact your life in a number of ways, so it’s important that you put some careful and thorough planning into the process.
Before you start making plans, here are some important things you need to know.
Reasons for Selling
There are loads of common reasons why people sell their businesses – even if they’re doing well. Your reason will be unique to you, your life, and your business.
You might be going into retirement, or there might be a major financial or personal change happening in your life. You might be ready to pursue new opportunities or take some time off the massive hustle and grind of being a business owner.
Whatever your reasons might be, make sure you think about them carefully and decide whether this is truly the best long-term decision for you.
Preparing to Sell
Selling your business isn’t quite as simple as selling your old sofa on Facebook Marketplace. There’s a long process that involves legal steps and loads of documentation you’ll need to be aware of.
The first thing you need to do is conduct a business valuation to determine the worth of your business. You can use Cogogo’s Free Business Valuation Calculator to do this fuss free. After that, you’ll need to acquire and organize financial documents like contracts, financial statements, and tax returns.
Take the time to get in touch with an attorney who can assist you with addressing any legal or regulatory issues ad ensure you’re complying with local laws.
Marketing Your Business
You can’t really use traditional marketing campaigns to sell your business, and you’ll need to work through online platforms and/or business brokers who can help you through the process.
Its important that you come up with a compelling sales pitch that highlights the strengths and successes of your business, and it’s growing potential. You’ll also need to do some research to help you figure out who your ideal target audience would be to sell to, and seek out the best ways to reach these people. Remember that this sale could be a long and ongoing process.
Negotiating the Sale
Once you’ve found an interested buyer or two, this is where your negotiation skills will really become important.
You can (and should) negotiate the price as well as the terms and conditions of the sale. Potential buyers will most likely try to haggle you down, and it’s important that you clearly understand the worth of your business and determine your lowest selling price before engaging in negotiations. Once negotiations have been finalized, make sure to handle due diligence and provide your buyer with all the information they need!