| Selling your own business is as crucial a business | | | | willingness to buy after agreeing with the terms |
| decision as starting, operating, or expanding one. | | | | of the sale |
| Aside from investing your resources, time, and | | | | 3. How much is my business worth? |
| effort into it, it has become a major area of your | | | | While a business can be valued in different ways, |
| life and parting with it may have some surprising | | | | you, as the owner of the business, are in the |
| emotional repercussions if you do not carefully | | | | best position to give an honest and true valuation |
| plan for such an eventuality. | | | | of your business. Be wary of 'rule of thumb' |
| On a happier note, if you do make a conscious | | | | valuation method as there are many other |
| effort to map out a desirable plan, you are sure | | | | factors to take into account. Sit down with your |
| to end up less stressed and happier to move | | | | Business Accountant to ensure you have the |
| forward as you go through the next phase of | | | | necessary facts and figures so your calculations |
| your life, be it retirement or an entirely new | | | | are accurate. These days there is no need to |
| business venture. | | | | engage traditional business valuation sources. Let's |
| The process of selling your own business can be | | | | face it, 90% of the work is done by you |
| tedious and complex. There are questions you | | | | anyway, so why pay for expensive commissions |
| should ask yourself for which you should find | | | | when you don't have to. |
| answers without delay. It is critical that at this | | | | 4. When is the right time to sell my business? |
| point you give yourself sufficient time to ponder | | | | Proper timing is an important consideration when |
| these questions if you are to achieve your | | | | selling your business, but there is no hard-and-fast |
| desired outcome. Here are 7 questions to get you | | | | rule on when timing is right. Depending on your |
| thinking: | | | | motives for selling your business, any time may |
| Ask yourself... | | | | be the right time. For instance, if maximization of |
| 1. Why am I selling my business? | | | | price is your aim, a period of economic recession |
| The reasons for selling are varied - new business | | | | or depression is definitely not the right time. On |
| undertaking, change of career, emigration, | | | | the other hand if you are seriously thinking of |
| retirement, health concerns, family issues, | | | | retirement due to age or health, now is probably |
| business failure, economic down trend, and a lot | | | | the right time, and so on. |
| more. It is essential that you examine the real | | | | 5. Who can I sell to? |
| reasons why you are putting your business on | | | | Though not as widespread as the market for |
| the market because this will become part of the | | | | hamburgers and hot cakes, the market for small |
| basis for the factoring other processes necessary | | | | businesses is just sitting around the corner waiting |
| for the sale. For instance, if your reason for selling | | | | to be tapped. Your own family members, friends, |
| your business is business failure or a bad | | | | customers, suppliers, and employees can be your |
| economy, you may not be able to command a | | | | first prospective buyers. Even your colleagues and |
| good price and it would be best to consider | | | | competitors in the industry may be interested |
| postponing the sale. | | | | given the right perspective. The public at large is |
| 2. How prepared am I? | | | | of course your biggest market, but you will need |
| The preparation phase entails various processes. | | | | extra efforts and time to reach to them. |
| After making a final decision to sell, your key | | | | 6. How do I sell my business? |
| management and the general work force should | | | | The process of selling has greatly evolved with |
| be informed in a discreet and professional manner | | | | the advent of the computer. Reaching out to |
| to avoid speculation and panic amongst the ranks. | | | | people far and wide has been made easy with |
| Accurate and updated financial records of the | | | | the click of a button or a mouse. Selling your |
| business should thereafter be made ready. A | | | | business through the web is the first option. It |
| complete inventory of all the business' assets, | | | | allows you to be seen by millions of readers plus |
| especially the tangible ones, should be undertaken | | | | do some handy research and it can make the |
| and a thorough review of existing systems and | | | | process fun and exciting. Traditional methods such |
| procedures completed thoroughly. | | | | as print advertising in newspapers, magazines, bill |
| Other documents that can be prepared at a later | | | | boards, or posters are good sources, used in |
| time are the: | | | | conjunction with the internet. |
| * Information Memorandum - containing complete | | | | 7. Will I be happy after I sell my business? |
| information on your business | | | | Given the right price tag at the right time at the |
| * Confidentiality Agreement - to prevent | | | | right place to the right buyer, do you think you |
| information leakage, and | | | | will be happy in the end? |
| * Letter of Intent - embodying the buyer's | | | | ...I certainly think so! Best of success to you. |