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Selling My Business Next Year

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I was thinking about selling my  business next year….   last year, but didn’t take any steps … yet.  And now another year is gone and 2017 is approaching.  I do plan on selling my business next year. Getting a business ready for sale is both advisable and prudent.  Waking up one day and deciding you want to sell your business tomorrow may not be a good idea.  Deciding that you would like to sell your business as an exit strategy and putting together a plan is likely to maximize your gain from the sale of your business.

Selling My Business Next Year

Selling My Business Next Year

You could easily Google Preparing your business for sale and find many many articles/list and sources of information.   I had written a related article in the past as well.  But beyond the list- what of these methods are most important?  Are all of these measures necessary or are they just guidelines?

I had sold my own business of 20 years, I had considered several offers over the years, I went thru various stages of decisions as to how I would exit my business.  At some point I realized that my exit strategy would be to sell my business if I could find the right situation.  But from my perspective the most important part of my approach was to commit to running my business as if I would own it  perpetually.

So many businesses that try to sell- don’t sell.  A business owner needs to realize this and allow this fact to influence their thought process.  Currently I am a business broker in Anderson South Carolina and work with business sellers and business buyers in South Carolina, Florida , and South east USA.

Be Realistic When Deciding On Selling Your Business

Many components and aspects of your business should be looked at from a realistic standpoint, critiqued,  and adjusted as needed when preparing your business for an eventual sale.  Often its easy to think “selling my business next year”,  but the months and years can go by and next year never happens. When Selling My business next year, steps should be taken this year… or now.   Some important areas to address when looking to sell your business include:

  • Either develop, establish, or refine your business operational procedures, practices, and methodologies and have them documented
  • Does your business rely on you the business owner?  If so, make changes to reduce that reliance.
  • Clean financials-  Does your Income statement and Balance Sheet make sense ?

But the question to pose is what of these measures is most important or essential as it relates to preparing for the sale of my business?

In my opinion it is accurate , sensible, reliable Financial records.

The Importance Of Reliable Financial Records

Typical financials involved with the sale of you business can include Profit/Loss or Income Statements, Balance Sheets and   Tax Records.  Further into the due diligence process of your business good  Sales Journals, Customer Information, Inventory Info,   all can go a long way to maximizing the value of your business.

Clean financial records are so essential to all parties involved with the acquisition of a business. And all involved includes the Seller, the buyer, and possibly a bank, lender or third party investor.

So when looking to Sell your business-

  • If you have a great business that is producing great margins, produces a great bottom line, and a very high owner benefit- but the financial records do not support this – what do you have?
  • If you have a business that you own and run it semi-absentee, great systems, increasing sales, good industry but poor financial records- what do you have?
  • If you have the nicest looking, shiniest looking store, website, equipment, office or vehicles, but your financial records don’t make sense- what do you have?
  • Looking to sell your business next year?  Start working on your financial records today.

Scott Messinger is a Business Broker and Business owner based in Anderson South Carolina.  He has personally purchased 8+ small businesses and currently works with both business sellers and business buyers in both South Carolina and Florida. For a free consultation call Scott in South Carolina at (864) 210-8226 or Florida (239) 770-2421.

 

Is Selling Your Business The Right Choice For You?

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Is Selling Your Business The Right Choice For You?

Is Selling You Business the right choice for you ?

When a small business owner is considering the sale of his or hers business there can be an extensive search to find answers regarding the process.  Before one finds the answers or proper information as it relates to the sale of a business, you must know the questions to ask.  Most small business owners are not born with the knowledge on how to sell their business.  Furthermore most small business owners have not sold a business before ,therefore gaining knowledge and information on the best way to sell their business is essential.

Again each business is different and each business owner and business owner situation is different, but below please find a list of questions to consider that may be helpful in the process of selling a business.

        Are Your Ready To Sell Your Business?

Are you ready- Are you emotionally ready to sell your business?- Almost 20 years ago when approached about potential buyers looking to buy my business, I asked my CPA for his advise which I followed and still subscribe to today.  He told me “You will know when you are ready”.  I tell  those I advise today if you wake up one day and think its time to sell your business- take some time and reconsider.  If you wake up 30 days+ in a row feeling you want to sell your business- then maybe its time to sell your business.

Is Your Business Ready?

Is your business ready for you to sell your business?-  Are your financials in order.  In other words do you have accurate financial records that are both accurate and understandable.  Do you have systems and or policies and procedures in place and documented?

                What Is Your Business Worth?

What effect does the amount of money you would get from the sale of your business have on your decision. Is it your complete retirement money?  Is it enough to allow you to exit to pursue your next venture?  What is the difference between what you need the value to be and the actual value.

Getting Others To Help You Sell Your Business

DO you hire a business broker to sell your business?   Can your CPA or your attorney sell your business?  Can you sell your business yourself?  I am a business broker and sold my own business and also purchased multiple businesses as a business owner.  Yet after the sale of my business I chose to be a business broker as I recognized the value and confidentiality a business broker can provide. Furthermore most business owners are busy running their businesses before they add they task of trying to sell their business to their work day.

                Should You Improve Business Before You Sell It?

DO you buy that new truck?  Do I spruce up the inside of my stores?  Do I hire that new employee?

I always advise business sellers to run the business as you will own the business for the next five years.  There is a chance the business will not sell or take a long period of time.  Continue to make your business better and attempt to add value.  Certain Capital expenditure  should be carefully weighed, but continue to try to improve your business.

How Long Will It Take To Sell Your Business?

It seems that typically it will take longer for a business to sell than a business owner may originally think.  I suggest the 1 year time frame as a guideline but again all businesses are different and asking price for a business can strongly influence the time it takes to sell a business.

 

My Personal Advice When Selling Your Business

Every business is different and every business owner  and business owners situation is a little different.  But there also is some commonality shared.  My perspective on this matter is that of one that has started a business, personally purchased several businesses, sold my own business and have helped others buy and sell businesses.

I understand and respect the decision of selling a business is a very important and complex decision and process.  It is NOT all about the money.  The sale of a business  involves multiple facets including  price, emotions, financing,  lifestyle, families  and personalities.

When considering if it is time for you to sell your business spend some plenty of time seeking some answers, but begin with the questions most important to you.