Whether you have owned your business for a long time or not all that long, a sale is a big step to say the least.
That thought running through your mind, would selling now be a wise move?
In deciding to sell your company, various things will come to the surface.
From the price you get to any impact on employees and myriad of other factors, you have much to deal with.
So, what is in your best interests now and down the road?
How Much Do You Want for the Business?
If you will sell your startup or a business you bought a while back, you want to get as much money for it as you can. Not doing so may leave you with one too many regrets.
What you get for your business will of course be determined by any number of factors.
Among them can be:
1. What your industry is like now
If your industry is struggling, it stands to reason you may not get the price you want. That is in putting the company up for sale. The hope is your industry is doing well and there are many individuals out there looking. This would be for a company like the one you have to offer.
2. Your assets and liabilities
Be sure you have a good sense of what your company’s assets and liabilities are. This can have a big impact on the possible final number someone is willing to offer you. You want to be sure that your assets outweigh any liabilities by a wide margin. If you have a lot of financial liabilities, you could get less than you wanted.
That is assuming someone is willing to take on such liabilities. Your goal is to get every dollar you can. Know what is an earnout and more when hoping to sell. In looking to move on from your business, the structured offer has to work in your favor. If it does not, you may decide to hang on to the company for now.
3. If you have employees or not
If you are a one-person show, selling can look different than having workers. That said you want to be upfront with employees when the latter is the scenario. The worst thing you can do is all but keep your workers in the dark.
Given they have been loyal to you over time; it is only fair you do the same. So, give them as much detail as you can about a potential sale.
4. Spreading the word
When you have committed to selling the company, getting the word out is key. Not only do you need to let potential buyers know about a sale, the same is true of your customers.
Like employees if you have had them, many of your customers have been loyal to you. As such, keep them in the loop on the timetable for a potential sale.
As you weight all the factors in play with a sale, will you call yourself the former owner of this brand before long?