Selling a business should never be done on a whim. If you think it’s time to sell your business, start working carefully through the possible implications of doing so.
Here are three questions to get you started:
1. Is my business ready to sell?
Preparing to sell a business takes work – sometimes, years of work. Before you put your business up for sale, make sure you can produce at least two years’ worth of tax returns that demonstrate maximum profitability. These documents will help you get the best price for your business and show that it can thrive while operating within the law.
2. Is this a good time to sell?
Selling while your business is at its peak might seem risky, but it’s a good entrepreneurial move – especially if you are ready to move on to a new challenge. Also, consider the market conditions for your industry: if businesses like yours are struggling, it may be wiser to wait.
3. Who do I need to help me sell the business?
The services of an accountant, appraiser, business broker, or experienced attorney can all help you make sure that you navigate the sales process efficiently without sacrificing value or thorough preparation. Buyers will take the time to examine your business before signing on the dotted line – so you should do so as well.