What You Need to Know Before Selling Your Business – Essential Guide
Selling Your Business: Have you got a startup you’re looking to sell? If you said yes, how good do you feel about the prospects for a sale? Of as much importance, will you get the price tag you seek for your startup? By having everything lined up accordingly, odds are you can get the sale you want.
Below are 3 Things you Need to Know Before Selling Your Business
1. Know your finances – One of the big keys when you are eyeing selling is having a firm sense of your finances. Knowing both your assets and liabilities is key. In the event you do not know such things, it could turn away some potential prospects from looking to make an offer. Know that there are resources and professionals out there to help you. One focus should be to know how to calculate valuation of a startup. Being able to do this is something that will be beneficial to you. Keep in mind any prospects will want to know your company’s financial background. As such, you need to know it thoroughly too.
2. Are any employees in the mix? – In the event you have employees under your watch, what might happen to them? The last thing you want to do is put them in a precarious position. Remember, the thought is they’ve given you a lot of time and effort in the time you have been in business. As a result, you should not leave them hanging when a sale could be around the corner. Be as transparent as possible with your employees. While you can’t get into specific finances on a proposed sale, you can keep them abreast of a timetable to sell and so on. You can also think about if the employees could be have opportunities with a new owner or owners. Is there any chance you look to begin another business? If the answer is yes, would you offer some or all your current staff positions at the new business? Those are but some of the questions it would be wise to have answers for.
3. Make sure your company reputation is good – One of the last things you need is to have your reputation be bad. With that thought in mind, you should do some online searches before you go to put the business up for sale. Such searches could yield valuable info. That is information that can alert you to any notable red flags on you or your business. Depending on how much time you tend to spend online, you may not even know if negative info is floating around. It is better to take some time and search. If you find some negative details about your business, especially stuff that is not true, work to fix it. Doing this could mean the difference in a sale and being stuck with no one looking to buy your business.
When selling your business is the focus, are you excited about the prospects?