There are a number of things that you can rush in the business world, but selling a business is rarely one of them. It’s true that every now and then, an opportunity will arise that you can just take there and then, but in most cases, you’ll need to be far more strategic and intentional about it.
There are a number of fundamental steps that go into planning a long-term business sale, a few of which we go through below. From defining your motivations and end goal to planning for a smooth succession, these are some things to keep in mind.
Think about your motivations
The first step with any business sale is to seriously think about your motivations behind the sale, and your long and short term goals. These will have a big impact on the kind of sales strategy you pursue, and how quickly you try to put it in place.
For example, suppose your primary concern is to get as much cash as possible for the business. In that case, your plan will look quite different compared to if you wanted to find a conscientious professional from the younger generation to modernise your organisation and bring it into the new era.
Employ the right services
Early on, you’ll want to start reaching out to some important services that can help you out with the sale. These include business brokers like Dexterity Partners, accountants who can help you get your business finances in order, and solicitors who can assist with any regulatory hurdles.
Getting this kind of team together sooner rather than later can make things a lot easier. It can also make it much simpler to clarify and implement some of the priorities and goals we mentioned earlier. You’ll need to hire their services at some point, so why not get the ball rolling now?
Optimise the business for sale
It will rarely be a good idea to just sell a business in the condition it’s currently in. Much like when you sell a car, you want to polish it a bit, get the documents in order, and make sure that it’s going to excel for its new owner.
You should also prepare documentation with plans for future growth, including details like market predictions, potential future partnerships, and any other tangible opportunities you might have looked into. This will help prospective buyers develop an idea of how they’ll take the business forward in the coming months and years.
Plan for the succession
Lastly, you’ll want to put some plans in place for succession. If you want to protect your employees, for example, you may want to seek clarification about their future employment under the new business owner. Smoothing out the transition can be quite difficult, and it’s important that you take the time to consider any potential complications.
Selling a business might not be the easiest thing you’ll ever do, but by leaving yourself enough time to plan and execute a sales strategy, you can set yourself up for success as well as possible.