Thursday, September 25, 2008

How Would You Sell Your Business?

It's a funny thing, that all the effort and marketing and promotion that goes into consulting and helping small business owners, one way or another, by consultants, and coaches and advisors and accountants... how little attention is paid to how to sell your business. And of course, how to get the best price for it!

Really, there is nothing that coaching or consulting can do to help your business as effectively as possible, without considering the potential for future sale of the business.

What are the assets to develop in the business?
What would have to happen now, in order to realise the best return on the sale of the business?
What's my business worth, and how would I calculate that?
How would I find a buyer?

The questions and more, are integral to the decisions that we make as business owners right now - even when a possible sale is years away.

Let's face it - if it isn't sale-worthy now... why would YOU want your business?

Life's too short to waste time (ie your life) toiling away in a business that isn't worth nearly what it could be.

Thinking Of Getting A Business Coach?
Lindy Asimus
Design Business Engineering

Download your free 24 Page Action Plan Marketing Workbook!

Subscribe to Actionbites Blog

Reblog this post [with Zemanta]

1 comment:

Anonymous said...

When selling anything ... Part of the strategy must be to appeal to the greatest number of buyers and offering some seller financing will frequently bring more interest than insisting on all cash deal

In addition to attracting more buyers; The seller can frequently get a better price and provide the seller with decent interest from this financing.

Proof of the availability of a substantial down payment must be available to consider seller financing.

Unless there's an urgent need for substantial cash; .... What are we going to do with the cash? .... Give it to someone with a glad hand & a big smile in exchange for a piece of paper of dubious value from an institution who may or may not be there when we want our cash?

The pittance received as interest from banks is usually taxable and a quick scribble on a napkin would quickly reveal that the buying power of this pile of cash is shrinking every year.

If the seller does have a cash requirement .... Some or all of the income stream can be sold to provide it.   (See my comment .."Never eat the seed corn"   Click Here

Another option would be to sell a major portion of the business and while not being involved in day to day management ; The seller can keep an eye on things. ..... Especially the cash flow.

In case of default. .... The business would revert to the seller. .... I heard of a motel owner who appears to be making a business of selling his motel ... Over and over again.

Offering financing opens up more buyers, lets you be the banker and still have an all cash sale.

These ideas should not be implemented on a handshake but only with the assistance of knowlegeable, skilled counsel.

** DISCLAIMER** The foregoing is not to be construed as any part of any offering, is not intended to be legal or professional advice and the counsel of skilled professionals should be obtained at all times.