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Tips for selling your small business – Small Business Corner

You have decided to sell your business—so now what?

Selling your small business is a big decision and a multi-step process. Proper planning is necessary to maximize your potential returns.

Determine the value

A third-party valuation can provide a realistic estimate of what your business is worth. The analysis itself relates to how risky the business is and how much growth it has in front of it.

Clean up your financials

As a small business owner, you can avoid red flags by working with an accountant to present clean financial statements and business tax returns dating back at least three years, and ensuring that all income is accounted for.

Don’t neglect your business

One of the biggest mistakes a small business owner can make is to start focusing on the deal and ignoring the business. The deal is not done until everyone signs the paperwork. The buyers could potentially come back to the table and ask for a lower price, if they notice your company’s revenue suddenly declining in the months leading up to the sale.

Find a buyer

When engaging and interacting with potential buyers, you want your communication channels to be clear and open at all times. It is ok to have several buyers lined up in case an initial deal falls through.

Have a plan for after

Have a plan for what you will do after you sell your business. Even if you are selling your business to retire and spend more time with your family, you should still have personal goals you are working towards.

You spent time building your company from the ground up, so it makes sense that you will want to do everything possible to give it a proper send-off. Good luck!