Do you ever have those days when, regardless of how much you love your business, you feel like you want to sell it – like NOW? Selling a business isn’t easy and how to sell a business quickly is a bigger challenge.
The number one mistake businesses make (and I’ve been there too) is believing they can sell their business quickly. They underestimate the time it takes to prepare, market and close a sale.
If you think that selling your business will be done and dusted in just a few months, you might need to adjust your expectations. Optimally, even with a well-prepared business, expect the sales process to take between 6 to 12 months from preparation to closing.
If your business isn’t immediately appealing to buyers, exit-ready, or not valuable enough for you to want to sell it, which is true for about 80% of businesses, the timeline could extend to several years, rather than months.
“Due diligence was supposed to take 90 days instead it took 6+ months. Even with clean financials and great process documentation. It was not anyone’s fault but once you get the lawyers involved things slow down.” Nathan Hirsch founded and sold Freeup.net and now runs Outsourceschool.com
Understanding how to prepare to go out is critical. If you don’t implement the right methods in advance, you risk prolonging the sales process or having to make concessions on price.
If you’re unsure about the right approach, don’t worry. This article will guide you on the appropriate time and method to plan your exit.
Before making the ambitious decision to sell your business, it is essential to have a well-thought-out plan. This will not only ensure a smooth transition but will also maximize your profits.
“I’d love to say I started my business with an exit plan in mind. But truly, it didn’t occur to me till about year 12! Now that I started another business, it has a radically different business model as I’m in a different stage of life. Owners need to plan for that too.” Leona Watson, exited founder of Cheeky Food Events.
Here are five steps to promoting a business quickly:
These steps, if followed diligently, will put you in a favorable position when it comes to conducting your business.
The adventure of preparing and promoting your business at maximum price begins the moment you write your business plan. Companies created to sell other methods of expansion and build their business in such a way that the sales procedure is much less difficult in the future.
“We build all our businesses to be sellable from day one. Even if we don’t want to sell them. That means clean financials, great team and processes, and a backbone of SEO.” Nathan Hirsch founder of Ecombalance.com, accountsbalance.com, nathanhirsch.com and trioseo.com.
If you need to know if your business is sellable and how you can value it, here’s a quick assessment you can do.
A business that runs smoothly and efficiently is attractive to potential buyers. Strive to ensure that your business is efficient and that all processes are well documented. Your team can triple your starting price, so have a team running the trades and a second-level control you can trust.
“Three things we never skimp on for our startups: the lawyer, the accountant, and the critical software. When you sell your business, you want to act quickly. These 3 elements shape the backbone of your operations. Melissa Kwan, expired entrepreneur and current co-founder of ewebinar. com, profitled. fm and melissakwan. com
Timing your million-dollar business exit is an art and it significantly impacts the outcome of the sale. Ideally, you should sell when your business is thriving and market conditions are favorable. Avoid selling during a market downturn or when your business performance is subpar.
With 2,400 businesses for sale every day, we are currently in a buyer’s market, which will likely last for at least another decade. There are more businesses for sale than there are buyers looking to acquire. When they have the luxury of choice, you as the seller need to build an irresistible business for acquirers.
Advice: Do not wait until you’re burned out or the market is in a slump. Stay informed about industry trends and seek professional advice to determine the best time to sell. By planning ahead, you will sell your business on your terms.
Georgi Todorov, former owner and current CEO of Create
“I sold my online business in a month. But that’s because I had all the main points prepared beforehand. Additionally, I am proactively looking for a potential buyer.
Having all your legal, financial and operations documents organized and readily available instills confidence in potential buyers and it will make your life less stressful once you start the selling process. Having your documents in order also increases your business’s value.
“I think the smartest thing I did was establish a praise formula for documenting procedures and turn it into a festival with the staff, with prizes given at random. Every week for 6 months, a new procedure is documented in all spaces (Sales, Operations, Finance, Technology). The team was responsible for the creation, implementation and update. When I went to sell years later, all the operational documents were ready. It made us look professional, organized and, above all, productive. . . valuable. Leona Watson, former founder and CEO of Cheeky Food Events.
A comprehensive transition plan, developed from the beginning, makes your business attractive to potential buyers. This demonstrates their commitment to ensuring an elegant replacement of the property.
Tip: Draft a detailed plan outlining how the new owner will assume control of the business.
So when that feeling of lack of being able to sell your business now, be prepared.
Prepare your business now to sell it for maximum value later.
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