There are always signs it’s time to sell your business. You’re just ignoring them. Start being honest with yourself before it’s too late.
You must plan your exit.
- Life circumstances. It’s not easy running a successful business.
- A good offer comes along.
- Lower interest rates.
- Other opportunity presents itself.
How do you know if you should sell your business?
Four indications that it might be time to plan an exit strategy for your business (or for you personally).
- You’re on 4 or 5 different medications.
- The company has outgrown your skill set.
- The market might be moving against you.
- A lucrative opportunity presents itself.
When should I sell my small business?
Generally, business owners should look to sell because they want to make a lifestyle or professional change. Don’t sell when the market is in a downturn: The value of your business is correlated to the market within which it operates – therefore, you should look to sell when business is good, not bad.
What are the steps to selling a small business?
Make selling your small business easy with these seven steps.
- Determine the value of your company.
- Clean up your small business financials.
- Prepare your exit strategy in advance.
- Boost your sales.
- Find a business broker.
- Pre-qualify your buyers.
- Get business contracts in order.
How do you know how much to sell your business for?
There are a number of ways to determine the market value of your business.
- Tally the value of assets. Add up the value of everything the business owns, including all equipment and inventory.
- Base it on revenue.
- Use earnings multiples.
- Do a discounted cash-flow analysis.
- Go beyond financial formulas.