Quite possibly one of the only things that can even be compared to the stress of starting up your own business is the stress that you might face when you come to sell it.
Of course, after years of hard work, blood, sweat, tears and who knows what else, it is imperative that you go the right way about it. So, in collaboration with Phoenix BSC, here are a few tips for the big jump:
Don’t wait too long to sell
Like anything in life, there is often a window of opportunity to get the best deal, and the important thing is knowing when this window is open for you to do business.
On average, it can take up to four years to sell a small business, so long-term planning is key to a successful sale. Think forward, as much as four years from now, and identify what people will be fighting over in the future.
Keep a detailed record of everything you do and you can reap the rewards when the time comes to sell.
Set up ready for growth
And get ready to prove that it is there. Usually, if a business is having trouble growing, it is because of unseen internal troubles. On the other hand, do not overestimate a company’s growth if it its earnings have only just started to rise.
For example, if you project £2 million turnover for the next two years, it is important that this figure is not based on a burst of revenue that may have been acquired in the past six months.
You will need to take into account every month that you have owned the business, not just the last six months where times have proven lucrative. A buyer will always be sceptical, and it is important to bear this in mind before you show your projections.
Sell to the right person
Many businessmen have sold their company to the first offer on the table and have lived to regret it further on down the line.
Selling your business for little, with the choice of an extended contract may mean that you will lose it all, as many businesses fail after just 12 months of new ownership.
It is important for everyone that a new owner has experience, is a good leader and is passionate about the task that they are about to undertake.
Consult the right people
The first thing you need to do is get a valuation, and you can do this in a number of ways. From your local accountants, right through to investment banking firms – it is important to find out who can do the most for you and for the right price.
At the same time, you may need the right financial advisor, as well as the right type of management to back you up and carry the torch after you are gone.