Does your business no longer feel like the “baby” it once did? Perhaps it’s grown so much that you’ve decided to hand it off to someone better suited to handle the intricacies of a larger corporation, or maybe you just got a great offer. You might even want to sell it in order to retire.
Presented by Portfolio Management Group, the following guide discusses a few signs that it may be time to sell your business.
- You Hate Going to Work
This is a great indicator that it’s time to quit your job — or, in your case, sell your business to someone who would enjoy running it. If you’re tired of sticking it out in a field of work you no longer enjoy or you miss being an employee, it may be time to part ways. Just make sure you’re not in a temporary slump or rushing into a hasty decision because of a bad week, month or quarter.
- You Got an Offer You Can’t Refuse
If your small business is performing extremely well, you may get an offer from a larger company to bring your business and staff on board. Offers like these don’t often appear out of thin air, but if it works out this way for you, you could certainly consider selling and negotiating staying on board to run things (though not as the owner).
- You Want to Retire
If you’ve reached the end of your career, you may feel exhausted at the thought of spending another 10 or 20 years managing the business you built from scratch. Perhaps one of your adult children wants to take over, or maybe you’ve already got a buyer lined up. If you don’t, experts recommend going through a business broker or trying to find a buyer through your network.
- You Want to Switch Careers
For those who no longer want to be business owners or entrepreneurs, selling a business is the practical option for starting over in a new field. Regardless of how well your business is doing, you may wish to make a change that’s inspired by personal reasons.
Preparing to Sell
- First, you should determine how much you want to sell your business for. Do your research and compare similar ventures and how much they made during a recent sale. You may also find yourself in negotiations with a buyer: So do your due diligence with a company like us for smaller transactions and if it is a larger one, engage a company like Sellerplex and bring a lawyer Even if you are friends with the buyer, it’s good to have a thorough contract drawn up.
- Your business may need some cleanup. Your operations may not be up to speed in terms of organizational structure, operating processes and overall efficiency. Maybe you have poor accounting practices, a common small-business challenge. Or, it may just need some generalized review and internal re-organization. All of these decrease your value and ultimately, your selling price. Hiring a firm like Portfolio Management Group will help you get your business health up to par in an economical manner.
- If you don’t have a buyer yet, organize your financial statements as well as your paperwork before you bring them to someone who may be interested in purchasing. The more information you can give them about the business and how it has performed during your tenure as CEO, the smoother the sale will go.
To make organizing paperwork easier, consider improving your invoicing process to make sure you and your team get paid quickly and make as many of your documents digital as possible. This will make it easier to gather information on your finances and compile data from different sources. Don’t settle for less than ideal: Using an online program that generates invoices gives you the benefit of creating a customized invoice template that can include your logos and graphics as well.
Remember that you’ve decided to sell your business to make your life easier. Whether you are retiring, moving onto a new startup, or doing something else with your work hours, you will see success sooner if you develop a reasonable plan well in advance of selling your business.
Portfolio Management Group can assist businesses as they make important decisions. To learn how we can help you and your business, please get in touch by emailing Craig Daley directly for a free consultation.