Let’s discuss the Top Decisions You Need to Make NOW to Sell Your Business LATER!
The most successful business owners consider their ENDGAME as soon as they have a vision for their product, brand, or service.
In my last article, “Top Decisions You Need to Make NOW to Sell Your Business LATER, Decision 1: WHEN” I shared with you the first of four decisions you need to make to ensure your business is built for both now and in the future.
In this article, I’m going to cover the second of four key decisions: WHY.
Key Decision Two – WHY
Regardless of whether you want to sell your business now or in the next 30 years, for both your and the company’s sake, you need to evaluate the circumstances under which you might leave and do all you can to ensure that your business could be sold at any point and time for as much money as possible.
Most students join the ENDGAME believing their motivation for selling is confidential and no one needs to know the reason why they want to sell.
But the truth is, that’s not entirely correct.
Potential buyers will always want to know why you’re choosing to sell and what your future projects are. However, you don’t need to get into specifics until you’re sure they’re qualified and interested.
For instance, potential buyers will want to know if you’ll remain available to do the transition after the transaction is completed. They’ll also want to confirm you won’t become a competitor in the coming weeks, or if you see upcoming economic changes they should know about.
The reason to sell can make a difference in how quickly you want to sell and how long of a transition period you’ll be able to provide a potential buyer.
For example, if you want to sell because you’re facing health issues, the transition period may be short, or impossible to do. It’s important to keep these scenarios in mind as you decide on a date and your valid reason for selling.
Or maybe you’re facing partnership disputes that are causing you to want to sell. This is fairly common. Disputes can occur between owners, and rather than continue to operate the business under difficult circumstances; business partners often decide to sell the company.
That’s okay and could be important to share with a potential buyer.
And finally, what if the reason is economic? Maybe there is a decrease in profitability, or you need a new injection of capital.
Businesses need capital to grow, and you may need a new owner with the funds needed to expand. If that’s the case, you may consider merging with another company.
Some entrepreneurs spend years figuring out how they want to leave; others seem to know the answer intuitively. Still, others simply skip that stage and later pay the price.
If you can answer the question WHY it’ll be much easier to plan a successful and profitable exit. However, if you’re feeling a little uncertain and need to do some investigating, you’re not alone. However, don’t linger here too long.
Most students don’t think about selling their business until a crisis hits and they realize they need to sell. But most quickly find that their business wasn’t built to sell, and they’re stuck with taking any offer that comes in (or worse, closing their doors without anything to show for the years of work they spent growing their company).
Don’t let that be you!
The key is to prepare your business and yourself today. If you’d like support or more information to set yourself up for a successful and profitable exit, I invite you to watch my free on-demand masterclass – How to Plan Your Smooth & Successful Transition from Business Owner to Highly Profitable Seller (withOUT headaches, brokerage fees, or accepting LESS than you deserve).
I’d love to know if you have selected a date to eventually sell your business.
Cheers to your next level of success! 🥂