Set Goals and Have a Post-sale Plan
Stepping out of a business that you worked hard to build and selling your business can be difficult. In a business owner survey, 58% of respondents named the economy, industry trends, regulations, and taxes as obstacles to making a successful exit plan, according to LinkedIn.
However, planning a transition strategy as far in advance of a sale as possible maximizes net proceeds and minimizes the chance of an unplanned, unexpected shutdown. Important steps include deciding when to remove yourself from daily operations, getting your personal finances in order to ensure your financial security after the sale, and having some idea about what you want to do next.
Ultimately, setting goals for what you hope to gain after the sale and plotting the future beyond your business can help curb anxiety, give you a clear direction, and help maximize your return on your investment.
Assemble a Team of Advisors to Support Your Business Sale
Having a team of expert advisors to support and guide you through the sales process is essential. It can also relieve some of the stress in navigating a sale.
This team should include a business broker who can provide a proper valuation of your business, help ensure your company is in optimal shape for a sale, assist with necessary forms and documentation, market the business, and put you in touch with the right buyer. An experienced broker can also help you navigate emotional challenges and help you maintain an objective perspective.
Additional members of the team should include accountants, lawyers, financial advisors, and other professionals who understand the special nuances of selling a business. Knowing you’re not alone and having experienced people by your side can make a complex process much easier.
Organize Key Documents and Financial Records
There’s nothing more stressful than trying to locate key documents and share accurate financial records during due diligence when your files are in disarray. Gathering necessary paperwork and reviewing financials to ensure accuracy for the next owner alleviates stress and paves the way for a smooth, transparent transition for a potential buyer.
Delegate Responsibilities to Key Staff Members
As you begin transitioning out of your business, delegate more responsibilities to key staff members like managers or department leaders. Handing over the reins to someone else during the sale proves to you and potential buyers that your business can still thrive and grow without your involvement in daily operations.
Doing this will also reassure you that the business won’t crumble the minute you’re gone. It can also identify challenge areas for you to address and resolve to optimize operations for potential buyers.
Embrace Change
Making a big life change can seem daunting. In selling your business, you’re closing one door and opening another toward a new future. Instead of fearing the unknown, embrace change, welcome new experiences, and consider all the exciting possibilities your next chapter will bring.
Practice Self-care
Selling a business can physically, mentally, and emotionally exhaust you. That’s why it’s critical for you to practice self-care to rest, recharge, and stay resilient during the sale. Making sure you get enough sleep, eat well, take breaks, and do activities you enjoy outside of business are some ways you can slow down, de-stress, and take care of yourself.
Seek Support while selling your business
Lean on others for support when you need it to help you cope with the pressure and emotional impacts of selling your business. Talking to friends, family members, colleagues, or a professional counselor can help you process feelings of doubt, sadness, anxiety, or uncertainty that might arise during the sale. Airing your feelings can also lessen your mental load and brighten your outlook for the future.
The Endeavor Business Brokers team is ready to help you navigate the essential tasks and mixed emotions that arise while you are selling your business. Working with a team you can trust will reduce your stress level and ensure you are taking the right steps toward a successful sale and the next phase of your journey.
—
Along with business sales, Endeavor Business Brokers’ President, Drew Carney, is also a licensed REALTOR®. If your business also owns the real estate it sits on, Endeavor Business Brokers has the tools and experience to help you with every aspect of the transaction!