Preparing to Sell Your Business: Part 5/5
Selling your business is an overwhelming and daunting task. It’s stressful to even think about! Many entrepreneurs find themselves knowing that selling their business is the right next step for their personal lives, but simply don’t know where to start.
It’s hard to come to terms with the fact that the business that’s put food on your table for so long is now a source of your burdens. It’s an odd and conflicting feeling, but don’t worry. I’ve been there too. I’ve bought and sold a couple of my own businesses, as well as seen up close many businesses transfer ownership over the past decade.
Selling your business is one of the biggest decisions you’ll ever make in your life. That’s why I use the proven E4 Process to ensure the transaction is done the correct way, because after all, you only have one attempt to get it right.
The age old saying “don’t mix business and personal” is one of the silliest things I’ve ever heard. There’s nothing more personal than your small business! So when you think about selling it, it’s like having to make a decision to let a part of yourself go. We sometimes find our identity in our businesses, and a life without that business seems confusing and unclear. That’s why its so important that the exit process is flawless.
That's also why number 5 on this list is the most important.
Action #5: Hire a Consultant
When you’re ready to sell your business hire a professional consultant that will provide a proven framework and coaching to help you find the right buyer for the maximum dollar amount. This is something you could potentially do on your own, but it’s not the type of decision to make or actions to take without an experienced professional.
Yes, there are costs associated with this, but you’ll lose more money in the sale than what you would pay the consultant. You need an advocate by your side every step of the way. Someone who will help you find the correct value of your business. Someone who will ensure you don’t waste time with “tire-kickers” or unqualified buyers. Someone to ensure CPA and attorney fees don’t get out of hand.
For your whole career people have been taking money out of your pocket. You need an advocate whose job is to put the most money as possible in your pocket! Your success is my success!
Because selling your business is one of the top two or three largest decisions you’ll ever make, your livelihood depends upon it.
If you take these five actions, you will exit your business financially stable with peace about the legacy of your business continuing and enjoying the life you’ve worked so hard to achieve. If you don’t take these steps you are guaranteed to leave money on the table. And we’re not talking about $1,000 or $5,000. We’re talking tens or hundreds of thousands of dollars!
If nothing else, get number five right. As your consultant I can help you with Actions 1-4, although ideally you should begin those immediately. But if you don’t take action on number five, you’ll suffer three major consequences:
1. If you go it alone, chances are you’ll suffer from an inaccurate valuation. Value it too low and you’ll leave money on the table. Value it too high and you’ll drive away Potential Buyers. When you’re unsure on its valuation, Potential Buyers hold the power in negotiation. As your consultant I can help you value it accurately in order to not waste time or leave money on the table. A bonus of finding the correct value is that it might help you realize you’re not ready to sell your business yet. If you don’t like the valuation, you now have the power of information to make the best choice for you.
2. Selling your business is a part time job. If you do it yourself that’s less time you’re spending with your business, which will lead to a decline. If there were ever a time to spend more of your focus directly on the business, this is it. Recent declines in business performance are another major red flag for Potential Buyers. Focus on your business like never before, and I will focus on selling it. Having a high performing business at the time of sale will increase the urgency and attraction to any Potential Buyer.
3. When you’re representing yourself it’s only a matter of time that customers, employees, and competitors find out that your company is for sale. Customers become apprehensive to long-term commitments. Employees will become uncertain of their job status and may search for a new job. And competitors may ruthlessly take advantage of sensitive information. As your consultant, not only do I place importance on finding the right buyer for the right price, but I do it confidentially.
Give me a call when you're ready to sell your business.