What to Ask Yourself Before Selling Your Business

Starting a new business can be an exciting venture, but there will likely come a time where you’ll need to cut ties. Maybe you are forced to sell because you cannot run the business anymore. Perhaps the business isn’t doing too well and you want to get out before things get even worse. Or maybe you’re just planning to retire.

Selling a company is the ultimate accomplishment for most entrepreneurs. It shows that you started something from scratch and grew it into a successful business. Selling a business can be satisfying, but it can also be overwhelming and even traumatic.

Selling a business is a huge accomplishment but it’s also a major event. It’s not something that happens overnight, so you need to think about it carefully. Is selling your business the right move for you? Here are some questions you need to ask yourself before a sale.

What Are You Going to Do Next?

So you sell the business. Then what? You’ll need to have a clear plan in place for what will happen once you no longer have a place to be on a regular basis. What’s the next stage? You will likely need something to keep you busy. Will you start another business? Do you have other pursuits in mind? Have a plan in place so you don’t ruin your business sale.

What is the Minimum Amount You’ll Sell For?

You should have some idea of how much you want to sell your business for. If you don’t have a clue, then you have some work to do. You’ll need to determine its market value, which is often done by calculating assets, revenue, and profits. Your price should be competitive. A real estate agent can help you compare similar businesses that have sold in the area. A lawyer can also help you value your business appropriately.

What Deals Will You Accept?

A business deal is more than just the purchase price. There are other things to consider as well, such as bonuses, warranties, non-compete agreements, and employment agreements. These factors may make a deal less attractive, so get an idea of what you will accept and what will be a dealbreaker.

How Can You Increase Valuation?

Businesses are not always in the position to be sold for the highest price. There are likely some things you will need to do to increase the value. For example, you may need to get your books in order or deal with marketing issues that are making it hard to keep clients. Issues with a business can lower your valuation, so you should take at least a year to address these issues.

Learn More About Business Sales

Selling a business can be helpful if you are having financial issues, but is it the right move for you?

Florida has a strong economy, making it ideal for purchasing or selling businesses. If you are looking to make a sale, Orlando business purchase & sale lawyer B.F. Godfrey from Godfrey Legal can guide you through the process so you make the right decisions. Fill out the online form or call (407) 890-0023 to schedule a consultation.

Source:

inc.com/bruce-eckfeldt/5-hard-questions-to-ask-yourself-before-selling-your-business.html