Every now and then most business owners will ponder the prospects of selling their business. After the work involved in building it, driving it and being financially responsible for it, selling is the cash in at the end of the day.
Here are the three top reasons for selling, and a checklist to make sure you get the best result.
Most business owners choose to exit for personal reasons whether planned or unforeseen.
These can include retirement, a change in lifestyle, health issues, burnout or the opportunity to move on and do something else.
Selling can also be prompted by a change within the business, including the exit of other partners or a disagreement within the party of owners.
Chances are your business has some healthy capital tied up within it, and selling might be about seizing the opportunity to access those funds for another project, or minimise risk.
The final reason a business owner may opt to sell is strategic, to further grow their company using additional finances, technology or talent via a merger or even public listing.
Whether the reasons for selling your business are planned or unforeseen, the methodology for realising its value remains the same. It’s about planning, presentation, and seizing opportunity, and a business coach can assist with all these factors. These include:
- A plan – The best way of presenting your business is to have a current and comprehensive business plan. This covers the structure, financial position and future growth opportunities of your business.
- Figures – Your figures should be up to date, representing not only your current position, but the business potential.
- Branding – Your image should reflect your business in its best light, so ensure your branding and marketing, including your website, is up to date and you have a marketing plan to reflect it.
- Structure – The internal workings of our business need to be honed and clearly set out, including staff roles, policies and procedures and a clear outline of who’s responsible for what.
- Finances – Your accounts should be neat, with receivables and payables as well-tended to as possible.
- Legal – From business registration and insurance to ownership percentages, ensure the legal aspects of your business reflect its current position leaving no liabilities.
- Emotional readiness – Finally a business owner should ensure they are emotionally ready to relinquish the reins. No matter the circumstances for selling, chances are you have an attachment to your business and emotional investment within it, so consider what you are doing next and have a plan for after the sale.
The Coaching Circle
The Coaching Circle has an expert selection of mentors available to guide and assist you through all elements of the selling process. You can peruse our panel of professionals here or contact us directly for further advice.