| If you want to sell a business think about this for | | | | using only the network of contacts that you have |
| a moment. To do it successfully requires | | | | already developed. The more targeted your |
| significantly more than hanging a "For Sale" on the | | | | marketing, the more sincere inquiries you'll receive. |
| front door. Selling your business is serious stuff. | | | | Marketing to a broad audience will generate more |
| It's not just a question of how much you can get | | | | leads but not necessarily qualified leads. |
| for it, it's far more involved and the question is, | | | | 5. Negotiations |
| are you the best person to handle it? Take a look | | | | If you enjoy horse trading, and most |
| at these seven essential steps and then make a | | | | entrepreneurs do, then you might enjoy this |
| decision regarding brining in a pro. | | | | phase but be sure to keep your eyes open to |
| 1. Valuation | | | | the whole picture. It's not just price. It's how |
| Just what is your business worth? Literally | | | | much, when, and with what conditions. Getting a |
| hundreds of books have been written about this | | | | great price but losing out on terms or conditions |
| subject and there is no definitive rules but there | | | | can be a costly mistake. Identify the limits that |
| are two basic guidelines. If your business is | | | | you will accept in negotiations before hand. |
| profitable then your price is typically determined | | | | 6. Closing |
| by using a multiplier times annual profit or sales. If | | | | Like it or not, this is one part of the sale where |
| your business is marginal or operating at a loss, | | | | you are going to have to rely heavily on others |
| then the price will be based on the value of your | | | | and it will task your managerial skills if this is your |
| assets. Each industry typically has a starting point | | | | first go at a sale. Think about it for a minute. |
| multiplier that is increased or decreased based on | | | | You're going to have to coordinate with attorneys |
| the business for sale. | | | | (your own and the buyer's) accountants, banks, |
| 2. Strategy | | | | suppliers, lease holders and benefit providers in |
| Have a plan and work the plan. Before you do | | | | order to get a smooth transition. This can't be |
| anything you need to reduce to writing just what | | | | done shooting from the hip. You need a detailed |
| it is you are trying to accomplish. Why are you | | | | check list ti ensure there are no surprises later. |
| selling? What's the financial objective? How will you | | | | 7. Transition and Exit |
| market and to whom? What terms and conditions | | | | Congratulations, you've sold your business. What |
| will you accept? Having a roadmap makes driving | | | | are you going to do now? Visit Disney World? |
| to the sale a much more profitable experience. | | | | Probably not. Even though you probably don't |
| 3. Package The Product | | | | have an ownership position, your future take |
| You've probably spent a good amount of time | | | | from the sale will most likely depend on a year or |
| and money marketing your goods or services and | | | | two of the business continuing to do well. It's in |
| building your brand. The same kind of effort has | | | | your best interest to have a written plan to |
| to go into packaging your company as a great | | | | communicate the sale to your employees. A |
| buying opportunity. Focus on the benefits to | | | | smooth transition without personnel turbulence |
| potential purchasers be it price or terms or | | | | can be a money maker for you in the long run. |
| patents. | | | | Now back to the original question. Are you the |
| 4. Marketing Plan | | | | best person to handle all this? If you think you |
| Before you place that ad in the local newspaper, | | | | need some outside help then it's time to search |
| think about how you want your potential buyers | | | | out a professional business broker who can do |
| to learn that your firm is on the market. Often | | | | the heavy lifting and insure your sale is both |
| times there is value in doing discreet marketing | | | | profitable and as painless as possible. |