5 Key Points to Know When to Sell Your Business

There is no denying that your exit strategy is aFirst, Mr. Smith must ask himself if his business is
tactic that every single business owner needs tosalable. Well, he has a steady flow of customers
have in mind, but sometimes this is morethat keep him working full-time... plus additional
complex than we would like to believe it is. Sellingrequests for work every week. He employs
your business can provide you with a lot ofmultiple employees aiding him in his business full
excellent opportunities, but unless you completelytime and his records for the past four years
have an understanding of your exit strategy andshow continuous growth and profit. Yes, his
the best way to implement it, you will be left withcompany is salable.
a business that you either can't sell or that youNow, is he all set to sell his business? Since he is
can't get its value out of when you do sell.getting ready to turn 55, he is really ready to
That's the reason there are 5 principles that youretire. He wants a life outside of his business and
need to comprehend before you even considerhe determines that this is an excellent time for
selling your business. These key points are simplehim to get out.
enough to understand and helpful enough to giveNext, with the economy in mind, is this an ideal
you some valuable insight on whether yourtime to sell? Well, it is the middle of the summer
business is ready to sell.and his business is always the strongest during
1. Is your company salable?the summer. Also, he just got a motor replaced
2. Are you prepared to sell your business?for one of the business' trucks, and for the last 5
3. Is this the best time to sell?months he has put money back into the business
4. Are you personally committed to selling?to upgrade tools and equipment. Also, the
5. Does it help your life plans in the long term tohandyman economy is booming in his city. So yes,
sell your company now?it seems that now is a good time to sell.
Those are the 5 principles that you must keep inNext, is he personally dedicated to selling? Mr.
mind if you are considering selling your business.Smith desires to be done working, because he
Because it may be hard to understand how all ofwould like to be able to travel and enjoy his
these principles work in a real-life scenario, here'sretirement free of the stress running a business
a situation that might enable you to comprehendbrings. So yes, he is completely devoted to selling
just how these key points relate to you.his business.
For example, let's look at Mr. Smith. Mr. Smith'sFinally, does selling accomplish his long-term plans?
managed his own handyman business for closeSelling the business for a reasonable price would
too 10 years now. He has built up a fair amounthelp him to realize his dream of investing in the
of savings and is thinking about retiring... seeing asstock market, which he has always wanted to do
how he is around 55. To help add some stabilitybut never had the chance. This would also allow
to his savings, he is considering selling his business.him to relax on weekday mornings and travel in
However, since he is not sure whether this wouldhis camper when he wants. So yes, selling his
be profitable for him, he chooses to use these 5business helps him accomplish his objective of a
concepts and look at his business to see if sellingsuccessful retirement by age 55.
is a wise decision.