You have worked hard to build your company from scratch and you are now ready to sell it off and move to the next challenge. Congratulations! You have done what many people only dream of. Selling your business is a big deal, and this is why you need to get it right the first time out. Here are some tips on how to sell a small business.
- Be Clear About Your Reason for Selling
You need to be clear about the reason for selling off the business. Don’t just sell it on a whim. Do your due diligence to understand the implications of the sale. You need to think beyond the amount of money you stand to make. Think about how it will impact your career, the company’s future, and your brand. Take your time to learn more about the prospective buyers. This will ensure you seal the deal with someone who is capable of taking over the work you have done and making something better out of it.
- Sort Out Pending Business Issues
The sale process is complex and could take a long time. It is, therefore, important for you to do your due diligence before the commencement of the process. Sort out any pending company matters and make sure the accounts are in order. Make sure you have all the paperwork needed to complete the sale. No one wants to buy a company laden with bad debt or whose systems are out of date. Document your procedures and policies to make it easier for the buyer to understand the business. Invest in systems that can measure your key metrics and keep your employees accountable.
- Involving the Experts
It is important to have the right people by your side before and during the sale. They include investment bankers, tax advisors, and attorneys. They are best placed to handle any commercial litigation and transactions that may arise. They will also be able to give an honest assessment of the business and ensure you meet all legal requirements. These experts will provide insights regarding the sale of the business that you might have missed. With their expertise, you will be able to maximize the value of your business and get a bigger payoff.
- Involve Your Management Team
The management team in your company has played a vital role in shaping the company to what it is today. Therefore, involving them can make the sale easier. Also, the new owner may be interested in retaining some of the staff in management. By keeping them involved and informed about the sale, you prepare them for the transition.
- Understand Your Company’s Narrative
You need to work closely with PR and marketing experts to ensure that your company has a compelling story to offer when it is being sold. During the period of the sale you, your company, and employees are in the spotlight. Your company’s narrative is important in creating confidence among potential buyers, your employees, and other stakeholders.
This is how to sell a small business
