Don't Wind Down Your Business Before It's Actually Sold
If you think that closing your business is a good idea. before it's sold, think again. Why you've just made the biggest mistake possible.
Tip #1 - Don't Be Sentimental
Being sentimental is the kiss of death when it comes to selling a business. When JP Morgan Chase bought Bank One, do you think everyone in the boardroom were all teary eyed, Not A Chance. It's a company, not a dog. Get over your person feeling about how much time and energy you put into making it work. How your kids grew up going in and eating all the cookies you baked. The long hours of toil to get jobs done "just right", to give your clients the best possible service.
Those things add value in that your client base has come to expect your best work. That great but a new buyer isn't as concerned about the sentimental things as you are. Neither is the bank, the appraiser, or the broker. The business people you'll be dealing with are interested in the value. If you close it before you sell, you've just lost All the Value.
Tip #2 - Break Free
So why does this matter so much in the scheme of things? Because you're the only one who cares about those things when it gets down to the money. Ask yourself why people buy a business that's already up and running. Is it because they want to buy the memories you made, or because they care about all the great times you had, or is it they just love that you worked so many late nights so they've got to have it?
If you detect some sarcasm you're on the right track. Those thing will every only matter to you and your family. The potential buyers aren't interested in buying those things in the way you want to sell them. Number one, they are buying an established business because you put in the time to build it and it makes money. They want to step into a business that's had all the love, care, and effort poured into it already. The culmination of all the things is it has those things along with a healthy profit margin.
Tip #3 - It feels like it's Personal
Selling a business you put so much effort into is a difficult thing. It's so easy to get caught up in the feelings you have for it. You spent so much time and energy building it. From the weekend painting it, hanging pictures, organizing, hiring, firing, promoting great employees, to sponsoring the neighborhood baseball team.
Your business is an extension of who you are. Moreover it's a part of the dreams you had when you started it, your family, and your life. It's part of your legacy that you hope will continue on and growing well into the future.
Tip #4 - In Good Hands
When it's all said and done, the hope is that you sell your business for a fair price and that the new caretaker will look after it's future it as much as you did. If you're lucky, maybe more... You have every right to look for the best possible situation to sell your business but remember it's not your family, child, or pet dog, it's a business. Finish like the pros do, with the knowledge you got the most possible for it and move on.
Tip #5 - Look Ahead
Finally the business has sold and you can look forward to your next challenge. Maybe it's another business, perhaps it's learning to make your own fishing lures, or learning to sail. Whatever it is, look forward and don't linger on what was. Look ahead to your next adventure with excitement.
The main point here is that the potential buyers are only interested in what the business is doing and how much potential it still has. All the other parts are just toppings to the meal. They don't add any tangible value but they do give it some flavor. Plan for your exit and your growth. If you'd like to Schedule a call to learn how to get yourself where you want to go, follow the link and set up a call today!
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