If you want to sell your business down the road, you need to start planning to make your move now.
When I first started freelancing writing, I had no notion of it being a “real” business. I thought I'd just pay the rent and buy groceries while my husband worked on his Ph.D. It was a way to earn some money while being home with my son.
Now my business has the LLC designation, and I'm the primary breadwinner for my family. However, I still don't intend to sell my business down the road. I've been fortunate, but I'm not interested in going through the effort it takes to scale up my business into something that I can sell later.
But that's not the case with everyone. For many home business owners, the whole point is to build something that can be sold down the road. If you want sell your business later, you have to start planning?now. The process of selling a business is one fraught with pitfalls, and it helps to have someone on your side.
I think my friend Jim Wang and his partners have the right idea his web site Plan For The Sale. Selling a business involves financial and legal ramifications, and you need to be able to navigate them. Getting help is a big part of that.
Business Valuations, Finding Buyers, and Completing the Sale
Before you can sell your business, you need to know how much it's worth, as well as understand the entire process. You also have to realize that your financials are going to be part of the documentation, so you have to keep good records — and know how to present them to potential buyers.
Everything in the process, from figuring out how much your business is worth to entertaining offers on your business, to closing the deal, requires a great deal of knowledge and paperwork. You can't just roll out of bed one morning and expect to make it happen. You have to plan it out ahead of time.
If you want help in that process, Plan For The Sale is a good resource. Jim and his partners have created an interactive business selling course that takes you through everything you need to know about preparing your business for sale, as well as actually finding buyers and completing the transaction.
On top of a straightforward, step-by-step course, Plan For The Sale also includes entrepreneur interviews and expert insights from people who have actually sold their businesses. Additionally, the site offers exclusive content, including live webinars (askyour questions) and a ?monthly newsletter.
I honestly don't know much about selling a business. It's not likely something that I will ever do. But if you think you might sell your business, I think that Plan For The Sale is worth a look. There is a fee to join the site, but it's relatively small ($499) when you think of how much information you get, and how much a consultation (think $200 to $500 an hour) might cost you.
What do you think? Are you planning to sell your business? Would you use a resource like this?