Selling your small business the right way…
When you’re a small-business owner you may reach the point when it’s time to sell your business. Whatever the reason, selling your business can be tough professionally and emotionally if you don’t do it the right way. Mistakes can be expensive and painful if you rush into selling your small business without adequate planning.
Selling your business is a tough decision, just as important as your decision to start it. Business advisors suggest asking yourself the following before selling your business:
- Do I still love what I’m doing?
- Is this still my passion?
- Do I still want to grow my business?
- How long do I want to do this?
There are of course many reasons for wanting to sell. It can be for health reasons, there is no longer a need for your particular business niche, divorce or even death of a partner. Or it may even be because the small business has become so successful the sale and the dollars to be made for the company are too good to pass up.
If you are thinking about selling your business consider these points:
• Be clear about why you want to sell.
• Seek out expert advice.
• Understand what selling would mean for your lifestyle.
A common mistake made by business owners is to accurately estimate the business’s true value and realizing after beginning the sale process there is not enough cash to support your lifestyle. You must carefully assess how much capital you need to walk away from your company. There are professional business valuation companies that can provide you with all the necessary information prior to marketing yourself and your business.
With the right advice, proper planning and careful consideration of the decision to sell or not to sell may be made just a little easier.
By Anne Capps Executive Vice President – American Receivable