For many business-minded people, their ideal goal is to create a business from nothing that they can then sell for a profit some years later. These serial entrepreneurs or business traders and investors often know what business plans they have at the beginning of their business, but when it comes to the selling of that business, things can get a little tricky. So to ensure that you’re able to sell your business for the amount you’re looking for, here are three tips for preparing to sell your business and leave it in the capable hands of someone else.
Prepare Your Business Over About 12 Months
While you may get a sudden itch to sell your business and go after new pursuits, it usually takes awhile to prepare a business so it’s ready to sell. Although you may be able to shorten the length of time if you really have your stuff together, it usually takes about a year to get your business in prime condition to sell. According to Brad Sugars, a contributor to Entrepreneur.com, some of the things you should do or take care of include making any cosmetic changes that might increase the appeal of your business, keeping your financials very much in the positive for an extended period of time, and outlining jobs and responsibilities for each position in your organization.
Ready The Company For Your Departure
Especially if you were the founder and president of this business from the beginning, it might be hard on the business once you step away. Luckily, there are things you can do when preparing your business for sale that will also help to transition you out of the organization. According to Ryan Wibberley, a contributor to the Washington Post, this should include scaling back your role and training other employees to take over the workload that you were taking on. While this may take some restructuring, it will be very beneficial to the company in the long run.
Try To Keep Your Plans Quiet
Despite how excited you may be about the prospect of selling your business, it’s usually a good idea to keep these plans under wraps as best you can. According to Mike Handelsman, a contributor to Inc.com, if too many employees find out about your plans to sell, they most lose confidence in your business, which could bring on some bad results right as you’re seeking to put your business on the best footing. So while there will be some that you need to share this new with, try to keep things quiet so your business can give off the best possible impression to potential buyers.
If you’re hoping to sell your business in the next year or so, consider using the tips mentioned above to help you prepare for this process.