What if you want – or need – to sell your Business right away?
Many business owners would like to believe they’ll just keep working forever and never want to sell their business…not a very realistic plan.
One way or another, you WILL leave your business someday.
The best scenario is to always be prepared to sell your business – then if an opportunity to sell comes along – or you just wake up one morning and decide it’s time for your Life Beyond Business™ – you’ll be ready to get the value you need.
Don’t wait for the worst case scenario and have to settle for what you (or your family) can get from selling a business that wasn’t ready with documented policies and financials.
Dave Driscoll discusses the most important ways to prepare to sell your business in his interview with Ron Ameln of the Smart Biz Show...
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Transcript of this segment:
Dave: As I said to you during the break, every business owner has to be prepared to sell their business tomorrow because you have no idea when that offer is going to come. And when the offer does come, you want to be prepared with your best shot that goes to “ok, how am I handling my taxes?” We talked about all these expenses, “how am I handling my H.R.?” What are my H.R. policies and procedures? Because H.R. is a big deal now-a-days when you are dealing with taking on future liabilities of employees when you buy a business, because when a buyer wants to come in and say “what kind of system do they have in place for the management of those people?” If you have those management systems in place that is an asset. Another thing is how protected is your brand?
Ron: What do you mean by that?
Dave: Protection of a brand…well if you have a sales people out on the street, you have people out there who are promoting your products. You know I am speaking about this from a business owner’s stand point; you have to secure those people. You have to secure those people as an asset because if they are not obligated to you and that business, and if they want to leave, they can take your brand and go and compete against you and devalue your asset, your brand. So when you are in negotiations for the sale of a business, the buyer might come to you and say “are your key employees and sale representatives on non-compete agreements?” and if you say yes, they will check it off the box because that means it is an asset value.
So look what we have done here, we have gone through: do not build the business around yourself, secure your employees, make sure that your books are accurate and correct all the time, and position yourself to entertain a buyer at any day because you have no idea.