Join Naomi Simson for an in-depth discussion in this video Knowing when to sell, part of Selling Your Small Business.
- You might have started your business already knowing when you wanted to sell. You were creating an asset, and you've heard all those stories in Silicon Valley, and you go, rags to riches, that's gonna be me. Or you might have had your business for a very, very long time and it's produced a great income for you. But you're ready for the next step, or the next stage in life. Knowing the right time to sell is really important, 'cause it can take you years to prepare your business for sale. Why do you really want to sell? Knowing that, knowing the emotional side of that, is very important.
How are you gonna sell it is important. What are you selling? And when? When is critical. Now we'll get to those other things later, but the when, is it the right time. Like I started my business in 2001, when my kids were small. And I started my own business because I thought I could run an online business, be a mom, run that part time, and it was all going to be great. So therefor, I would sell my business when my kids had finished school. So actually, that's come, and that's gone.
They have now not just finished school, finished university, and are working, and I still have my business. And the point is the when wasn't right yet. Whether it was ready, but I still had so much to do. Like so many things I still wanted to achieve. The market kept evolving and changing, and I was enjoying being a part of that. The other thing is the when is not just about you personally. You've gotta get your business ready, and that can take years and years. And things can change.
But then it's also the external factors. I wanna sell at the top of the wave, not at the bottom of the wave. And e-commerce businesses have gone up and down in terms of market, and I wanted to be at the top. So I still haven't exited my business. I wanted to create a real asset. And working on the when was just as important as working on the why, the how, and the what.
- Explain how to make your business marketable.
- Determine the value of your business.
- Identify and select the right buyer.
- Build a transaction team.
- Describe how to prepare your financials.
- Finalize a contract.