7 Things to Consider When Selling Your Business

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This is the beginning of my 8 Part Series on Leaving the Working World/Selling Your Business, Are You Really Prepared?

I had the opportunity to have a nice visit with my sister in-law today.  She did a similar thing over two years ago.  She left an incredible city and job that she loved.  She lived there for fifteen years.  She was well-known in her community and the industry she worked in.  When she moved to a different city and started a new job, she had the same emotions, came to the same realizations of what happens when you leave behind that incredible job and community you love.

So, if are thinking of making a big career change, major move or selling your business. This series is for you.

Today I will focus a bit more on business owners, when you are thinking of making that big move.

TIME & SECRECY

If you are contemplating exiting, retiring or just moving on.  The following is a list you need to consider.  Most of us don’t announce – HEY WE ARE SELLING OUR BUSINESS!   If we did, our precious clients would run for hills and never come back.   Our business was built on relationships so we didn’t want to destroy what we had as we never truly knew until the day the money was in the account if it would happen.

  1. Everyone must agree 100% that this is the right decision.  Family, partners, shareholders.  Remember multiple generations will be involved.
  2. Will you sell the business yourself?  Will you use a team that specializes selling businesses in your industry?  You must weigh the risks and benefits.
  3. You will have to have complete trust with your chosen team members that you expose the sale to.  You normally have at least one deal that falls through before a real sale is completed.  Secrecy is a must for seller and buyer.
  4. You will spend hundreds of hours getting it prepared for a legal team to sell it.  Yes, you.  You know the business.  Your attorneys and accountants don’t.  Plus do you want to pay them hundreds of dollars an hour to do legwork that you can pay an employee to do?  So, if you thought your road to not missing that baseball game of your son’s was getting easier, guess AGAIN!
  5. Are you willing to expose your confidential customer and business information to be exposed to your competition?  This will be requested by potential buyers.
  6. Are you willing to let your competition know your for sale?
  7. What if you change your mind and choose not to sell?  Now you just made your business public information.  Will your customers high tail and run?

Next week…Emotions…Leaving the Working World, Can you do it?

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