Trying to sell your business on your own, having not done it before, can be fraught with danger!
As the old adage goes, “You don’t know what you don’t know!“. There’s always the chance that you luck your way through, and all hail to you if you manage to do so.
But what I know for sure is, as an experienced Business Broker, is that most do not sell, or sell well.
You (as the owner) eventually use a Broker after trying unsuccessfully.
In many cases, all that’s unfortunately been achieved is that it takes a whole lot longer to sell and by potentially taken your eye off the business ball, the numbers may then reflect the distraction (which is not good for sale purposes)…
So why consider using a Business Broker from the outset?
We are licensed to assist in the buying and selling of businesses, at the State level
We have insights, gleaned over many years, into specific industries or type of businesses
We maintain confidentiality of buyer/seller
We act as a buffer between the buyer and the seller
We have a working knowledge of accounting, financing, legal, marketing etc to avoid unnecessary surprises in a transaction
We play the role of the “conductor of the orchestra” and even the “project manager”.
If trying yourself is what you want to do first, then watch out for these common mistakes to avoid when exiting. Not:
Focusing on the bigger picture
Doing your own research of your own market
Thinking through the “risks” – almost impossible to be “risk free”
Entertaining a willingness to accept risks •Example: Special conditions that can “kill the deal”
Regarding the probability of things going wrong
Reviewing the seriousness of quantifiable damage
Budgeting for upfront costs
Adapting “generic due diligence checklist/template” to your needs or size of the transaction •Example: Using a checklist suitable for multi-million dollar enterprise on small businesses
Deeming it worth the extra expense to seek input from accountants and solicitors with your particular industry expertise, while maintaining an existing relationship with your accountant or solicitor.
Being sure of who or what professional to seek appropriate advise from
Understanding the limitations of what the professional advisors can provide
Giving appropriate instruction to the professionals engaged
The following are 5 tips to help enhance the sale price of your business… by answering these 5 questions, you are seeing your business popping on Buyers Goggles.
Saleable? (i.e. not revolving around you)
If the answer is no to any of these, then you/we have got work to do. Contact me.
“Give yourself time – lots of it – if you want achieve the best outcome in selling your business.”
This is what I said to the good folk at BEmedia production recently, when they interviewed me for their Business Essentials Audio Programs…
If you’re thinking about selling your business, how about giving yourself three years to plan it all? That’s how long exit strategist Denise Hall would like to prepare a business for sale. There’s much to consider, she says. And don’t forget that an important ingredient is YOU and want you want in life when your business is finally behind you. Denise offers a 5-point checklist on what you need to consider before selling up.
Listen to it all hear…
Want to start this process softly softly, then I invite you to complete the Sellability Score questionnaire. It will provide a line-in-the-sand starting point, from which to build the plan. Once completed, I’ll be the one contacting you to talk through your plans.
How Saleable is Your Business in 2014?
How Saleable do you want Your Business 2014?
What are you waiting for? GET YOUR SCORE…
WANTED: BUSINESSES TO SELL!
Why, because we have buyers!
Yesterday I attended a funeral of a mother of a dear friend of mine.
Always of time of sadness and reflection…
Given the amount of grief experienced again today, I can’t help thinking about the poor families of business owners who have not done anything about their business affairs before they fall off the mortal coil, leaving it to their family to clean up. “Take me out in a box”, they say.
SO NOT SMART OR FAIR.
With the family grieving, the last thing they want to have to deal with is a business they most probably have no interest in. Lets face it, if they were going to be interested, they would have done so well before the fateful day. And the longer the business is left without being tended will mean the value drops away at a fairly rapid rate. Not good for selling purposes, at all.
Seriously, do something about the business before the owners are gone.
If you cannot, then call a broker just as soon as you can and have them get it sorted for you as soon as possible.
As the business probably forms part of the estate, the sooner it is sold the better the outcome will be for all, financially at least.
GOT A WEBSITE FOR SALE?
If you want to sell a website or you’re looking to buy a website (excellent bolt-on possibilities), please email me at firstname.lastname@example.org
What a pleasure it was being part of this panel discussing selling your business.
Together with Richard Goldsmith, Grant Arnott and host Jacki Mitchell, we had a great chat Friday morning, but only touched the surface. Whilst not complicated, there is more to Selling Your Business than one initially expects.
LIVE in the studio every Friday, Taking Care of BUSINESS is one of the few dedicated radio business programs that focuses on all businesses great and small. The program features special guests from the business world talking about their successes, failures, lessons learned and ideas. Hosted by Jacki Mitchell, the program is full of tips on marketing, finance, management, thought leadership and expert opinions along with insider knowledge on all things business.
There is a tendency to focus on small business as the life blood of the community – all big businesses once started as a small business.
To hear the podcast of SELLING YOUR BUSINESS. — at TAKING CARE OF BUSINESS – 98.7FM, go to Rppfm and enjoy.
As always, any questions, email me…