Anyone who is reading this article has probably spent the greater portion of their life devoted to starting and growing a business. Not only have they invented or sold a product, provided jobs and other opportunities to people, but they have also shouldered all of the risk while doing so.
If these business owners are like most people today who have grown a successful business, they’re probably beginning to think about life after their business. There are usually a lot of things that get business owners thinking about this, including events in their business and personal lives. These events can be good or bad, large or small, and whether they include a future for the business is fine-as long as the owner is no longer part of it, or is at least playing a much smaller role.
Building a Plan
Regardless of what a business owner intends to do, they need a plan. Without a well thought-out plan, it’s likely that an owner won’t accomplish their goals, whether they plan to stay with the business or not. There are a lot of parts to this process, but by thinking about their course of action throughout the process, they are likely to get where they want to go in good shape.
First, the downside. According to a report issued by the Small Business Administration, only 20 to 25 percent of businesses that are put up for sale actually end up with a deal being completed. And if that doesn’t concern an owner, this is going to make it worse: after a sale fails to be consummated, chances are good that the business will end up being dumped on the market or simply go out of business.
Selling A Business and the Owner
The first step an owner should take in selling their business should be to package themselves. No, that doesn’t mean that the owner should deck themselves out in wrapping paper and ribbon, but close. A business owner needs to solidify in their own mind exactly what they are selling. Is the purpose of a business a unique selling angle to a product or service, a unique market, or longevity in the market? All these things should be considered to make a business saleable.
The Needs and Wants of the Owner
If an owner is considering selling their business, they have probably given thought to what they will need for the next phase of their life. Do they want to start another business? Do they want to retire? Either way, that owner will need to establish a firm picture in their mind of what they want for their business.
Finally, Put It Out There
If the owner has put their business up for sale they have probably spent considerable time selling themselves prior to now. That’s great, because the next step is simply to tell everyone they know of their plans. They may want to get the advice of a realtor or attorney on the legal aspects of selling their business, but it comes right down to finding the person who is willing and able to make a deal. From this point, a business owner is well on their way to a profitable sale.