After spending years growing and maintaining your business, you might ask yourself: what’s next? Is it time to consider retirement or a new venture entirely? If you think it is time to start a new chapter in your life, you already have your answer. It’s time to pass the torch and sell your business.
The idea of selling your business can be daunting. It can be a long and complicated process. But, don’t panic. You don’t have to do it alone. It’s best to a hire a professional business broker. A business broker, or intermediary, advises business owners during the selling process. If you’re not ready to take that step, they’ll give you some ideas on how to get ready for the future sale of your business. One of the first things to consider is how to make your business attractive to possible buyers.
Run and Raise the Numbers
Brokers recommend business owners take 2-3 years to prepare a business for sale. It’s also important reevaluate during that time frame to make sure that your exit strategy still works well with the landscape of the current market.
Some of the advice they give includes:
- Keep your financials in order.
- Make sure you sell your business while it’s in good financial health.
- Know what your business is worth and what you could make from a sale.
- Consider the tax ramifications of selling your business, time-to-cash, and how to use the proceeds.
Make Yourself Scarce
It’s important to make sure your business can operate without you. Doing so will make it easier for a buyer to step into your role. Keep an eye out for potential leaders within your company and create dependable management team who will develop a rapport with customers. This is important, as buyers will see your client retention rates will remain positive, even if you are not around. A successful team will help grow your business, which will only raise its value.
Process documentation is an invaluable investment. Document any policies and procedures that your business uses. This includes creating new procedure manuals or updating the ones you have. Investing in process documentation will save your business time when training new employees and simplify the transition to a new owner.
DCA Virtual Business Support is able to document your processes and procedures. Our team can create Standard Operating Procedures from scratch or transcribe from audio or video content. We love helping our clients grow their businesses. Visit our website at DCAVirtual.com. And, if you need a professional to help you buy or sell a business, we can help make an introduction.