Dos and Don’ts For Selling Your Business

As an entrepreneur, the sale of your business can be one of the most stressful things you’ll  go through in your life, but it doesn’t have to be. These tips will help you implement  and understand what it takes to make a graceful exit.

Do:

•  Keep a clear head. Be careful that reason for your sale is not influenced by negative emotions like fear. Make sure you are selling your business for the right reasons as to not have any regrets or disappointments in the future.
•  Know your story. One of the first things your potential buyers will want to know is why you are selling your business. Do your best to communicate your reasoning clearly and in a way that does not reflect negatively on your enterprise.
• Plan ahead. The sale of your  business often requires a year or two of advanced planning.  It’s important that you work tirelessly to get your affairs in order and know your numbers backwards and forwards. If you remain patient, organized and efficient, the whole process will remain as uncomplicated as possible.
• Reduce the buyer’s risk. Another way to ensure a smooth sale is to make sure you’ve done everything you can to minimize your potential buyer’s risk. This includes putting informal contracts in writing and offering incentives to employees to stay with the business.

Don’t:

• Forget that you are still the boss. Just because you’ve decided to sell your business, doesn’t mean you can start shirking your responsibilities. In order for your business to fetch the optimum price, things need to continue running as smoothly as possible. Don’t slack off and start planning your retirement just yet.
• Be unrealistic. One of the biggest roadblocks you’ll face during your sale will your own unrealistic expectations. If you set your price too high, your business won’t sell- and if you set it too low, you’ll lose money. If you’ve remained organized, it should be fairly easy to get an accurate and fair appraisal of your business.
• Handle the profits unwisely. Wait a few months before spending the profits. It’s wise to consult with a financial professional to ensure that you’re complying with all tax regulations associated with the sale. Financial advisors can also help you decide how you want to invest the money, as well as  focus on long-term benefits, such as getting out of debt and saving for retirement.
• Do it alone. Besides providing necessary expertise and advice to guide you through the selling process, hiring professional help can help you maintain the emotional distance and objectivity you need to optimally sell your business. A lawyer, a valuator and a commercial realtor are all key to a successful and productive sale. You will be working very closely with your team, so it’s always good to have an amicable relationship with the people you hire. Make sure that you trust them and feel comfortable communicating honestly with them.