Many people dream of being a business owner. A business is something you can create with your own hands. With a lot of hard work and effort, you can build your business into a financial success. Along with the responsibilities of being your own boss, there are a lot of benefits that go with it. As a business owner, you are in charge of your destiny. Do you have goals that include selling your business or would you rather keep it as your own?
So, you’ve put in the hard work it takes to start and build your business. But you’ve worked so hard for so many years you’ve finally reached the point you’re thinking about putting it on the market. You want to turn your efforts into cash and move on to something else. But you’re not sure just how to go about it. Should you sell it yourself, hire a real estate agent who specializes in selling businesses, or retain a business broker? Before listing it on the market, there are important things you need to think about and know to maximize the return on your hard work.
During my many years of practice, I’ve met with a lot of business owners who have reached the point they want to sell their businesses. When I meet with them, the first question I always ask is, why? What at this point is motivating you to put the business you created and worked at for so long up for sale?
Over the years, I’ve been given many different answers to that question. The following is a list of the answers I’ve received most often.
Business Owner’s Reasons For Wanting To Sell Their Businesses
- They’ve worked hard to build their business into a financial success over the years. But because of a downturn in the economy, their business revenue is starting to decline.
- They’ve put so much time, effort, and hard work into making their business a financial success they’ve finally reached the burnout point.
- They‘ve reached retirement age.
- They’re dealing with chronic health issues making it difficult to continue working.
- They’re thinking about relocating to another part of the country.
- They have children, but the children aren’t interested in working in or taking over the business.
- They’ve reached a high point in their sales revenue and they want to take advantage of it.
Things You Need to Know When Selling Your Business
Depending on the reason a business owner is interested in selling their business, I generally counsel them about the need to first develop some type of exit strategy. That strategy should be developed whether they are interested in selling their business now, in a year, or three years in the future. The business owner also needs to make sure the books are up-to-date and in order.
If the business owner is experiencing a downturn in business revenue, I discuss with them the reason for the downturn. Depending upon their response to that question, it might not be the right time for them to put their business on the market. There aren’t a lot of people and/or companies wanting to buy a business with decreased revenues. If they do, they are going to want to buy it at a significant discount.
Unless there is no hope of turning the business around, it would be a better strategy to wait to place the business on the market until the revenue stream increases.
The point is, there are a lot of important things to consider before putting your business up for sale. Unless you consider those things, there is a good chance you will receive less for your business than it’s worth. When selling your business, knowledge is power!
Business Buying & Selling Experts In Coral Springs
If you have questions regarding the important things you need to know when selling your business, feel free to contact us, the Law Offices Of Gary I. Handin at (954) 796-9600 to schedule an appointment to discuss the best strategy based upon your situation.