Congratulations – you’ve made a business that’s viable enough to consider selling, the truth is that’s no small feat and probably took a lot of work to get to that point, so kudos to you. When you’re preparing to sell a business, there’s a lot of stuff you need to do before betting that point, in order to make sure you get the best possible market price for your business. Here are my 3 tips for selling your business:
1. Compare it to the Market
If it’s an online business, compare it to other businesses in the market to see what kind of sale price you can expect. Often there are some standard rules for how much to expect for an online business, such as 5x annual income as an example. It will depend on a number of factors, but doing some research online to see what other online businesses are selling for is a good way to start. If you’re selling a physical business, it’s worth getting some financial advice to see how much all the assets are worth as well as the business as well.
2. Consider Working with a Broker or Company to Help it Sell
The selling process can be both daunting and extremely emotional. Afterall, your business is something you’ve likely poured months and years of sweat into. Sometimes our businesses even feel like a part of the family. Emotions can easily cloud judgment and make it hard to be realistic about a selling price or even make it hard to have the motivation to really sell your business. As such working with a broker can be a great idea to help the process move more smoothly and their expert direction and experience can help you fetch a better price. BCMS offer this service, which can be a real lifesaver when you’re trying to sell your business at the best price possible.
3. Be Mindful It May Be an Emotional Process
Whether you’re selling the business because you want to retire, move onto new projects, or an unexpected situation came up, selling your business can be extremely emotional. Many of us who spend a lot of time investing in our business can find ourselves feeling extremely lost and sad without that busyness when it’s all done and sold. Be prepared to experience a range of emotions, you may even find yourself wondering if you’ve made the right choice. Having a clear list of reasons why you’re selling the business can help keep everything in check. It’s both an exciting but sad time as well. Be prepared for the unexpected!