If you’ve put the time and effort into starting a business, I’m sure you’ve considered the dollar signs that would come with selling it.
Some of the most famous rich people achieved their wealth by selling a business.
Although it may seem easy to accept an offer, especially if it’s higher than you anticipated, there are things to consider before parting ways with your startup.
I’m going to hand you a foolproof guide to selling a business that keeps your ideas
intact and your wallet stuffed.
You’ve heard the splashy news stories of big-name brands buying out competitors for
millions of dollars.
It’s not unrealistic to think that one day it could be you cashing that check.
Business growth is one of the most misunderstood wealth-building opportunities on the
Aspiring entrepreneurs mistakenly think that they have to create a brand-new idea, or
go into debt for startup money, or move heaven and earth to turn a profit.
There are so many incorrect assumptions about building a profitable business.
Today I’ll focus on the tail-end of operations.
Of course, the easiest way to make money off a business is to sell a product and
But if you’re not sitting at the number of figures you desire, perhaps you’ll consider
selling off the business for a lump sum of cash.
There’s no shame in that, especially if you’ve dedicated your time and money to
But there are risky obstacles on the road to selling that you should be aware of.
First and foremost, you have to decide if a business broker is right for you.
Kind of like a real estate agent, they seek out and filter potential buyers for you, but
often with a hefty commission price.
You don’t have time to shuffle through the legitimate offers and the nonsense, so hiring
a broker is usually a good call.
But choosing the correct person to represent you in the sale is imperative.
If a potential broker boasts million-dollar sales in the dozens, they’re not necessarily a
success. They’re more likely overworked and commission-hungry.
Find a broker that’s a good match for you and your company, and you can ensure their
dedication to a profitable sale.
Secondly, the future of your company after you sign it away is something to consider.
Will you continue on its journey without the title of owner? Or will you say goodbye and
hand her off?
In the former scenario, you may need to vet your future buyer to determine their
intentions with your company.
Ask to be introduced to their human resources (HR) department to see if they intend to
do away with your employees, or incorporate them in. Meet executives to see if they are
optimistic about the acquisition, or uninterested.
If you come away satisfied, then you have probably found a good match that will make
you the happiest in the future.
The final tip, and arguably the most important, is to get an appraisal.
Don’t just accept the first offer you receive because it sounds good. Get an expert to
appraise your business’ value based on market standards.
Keep this guide in your toolbox, and I promise there will be prosperity and profits in the
future of your business.