Turning a small business into a successful one is even harder.
That said, selling a small business is no cakewalk, either. In fact, long before you begin entertaining offers, you should ask yourself the following four questions to ensure you’re making the right decision.
Answer These 4 Questions Before Selling Your Small Business
There are no right or wrong answers here. This exercise is only meant to make sure you really should be selling your business right now. Take your time answering them and even get your loved ones’ opinions.
1. Why Am I Selling?
Are you selling your small business because it’s time to retire and you don’t want any obligations calling your name every day?
There’s nothing wrong with that reason, but consider that many retirees actually prefer working to some degree. Don’t be too quick to assume the same won’t apply to you.
However, if you’re selling because you’re looking to pad your retirement, you might be better off considering other options before putting your company on the market. Simply cutting expenses can give your budget a lot of breathing room.
2. Would I Be Better Off Just Taking a Smaller Role?
One way you could keep yourself busy during retirement is by simply taking a smaller role in your own company and handing off the main responsibilities to someone else.
If you’re looking for extra funds, you could sell your small business, but put together a succession plan that will provide you with an ongoing paycheck for a predetermined amount of time. This can also help encourage buyers, too.
3. Is My Business Ready to Sell?
Of course, you can’t get so wrapped up in thinking about yourself that you forget about potential buyers. Even though you may have a hugely successful small business that anyone would be lucky to own, that doesn’t necessarily mean potential buyers will see that right away.
If you want the best possible chance of securing the largest profits for all the work you’ve put into running your small business, you’ll need to spend some time putting it in “showroom” condition.
In a lot of ways, it’s not so different from selling a house. You want to make your small business look like as attractive an offer as possible. It’s not uncommon for this step to take as long as two years while the business owner takes every step to improve operations and tie up any loose ends a new buyer may not want to deal with.
Talk to a Professional Before Selling Your Small Business
We all know how helpful a second opinion can be, especially before you make a decision that can’t be undone. If you’re seriously considering selling your small business, let Mooney Lyons help. Our team of experienced financial advisors will take a look at your business and your reasons for selling it to ensure it’s the right move.
The opinions voice in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.