Selling Your Small Business: Tips from Jason Waters

Selling Your Small Business

Selling your small business is one of the biggest financial and emotional decisions you’ll ever make. Whether you want to retire, start something new or just move on, planning is key to a successful sale. Here are some tips to help.

1. Are You Ready to Sell

Before you put your business on the market take a step back and think. Are you really ready to sell? This decision should align with your personal and business goals. Selling a business isn’t just a financial transaction it’s often an emotional journey. Be clear on why you want to sell and what you want to do next.

2. Plan Ahead—2 to 3 Years

Selling a business doesn’t happen overnight. Ideally give yourself 2 to 3 years to prepare. This time allows you to get your finances in order, strengthen your operations and build value in your business. A prepared business sells faster and for more.

3. Get a Business Valuation

Knowing the true value of your business is key. A professional valuation will give you a clear picture of what your business is worth and help set your expectations. Buyers will want to see this information anyway so having it upfront will make the negotiations easier.

4. Get a Team

Get professionals on your side such as a business broker, accountant and attorney. They will guide you through the process of selling from pricing and marketing your business to negotiating the deal.

5. Keep Your Business Running

Don’t let the business slide during the sale. Buyers want to see a business that’s growing not one in decline. Keep your focus on your customers, employees and overall performance so the business remains attractive to buyers.

6. Due Diligence

Buyers will dig deep into every aspect of your business during due diligence. Get your financials, contracts and operational documents in order well ahead of time. Transparency and preparedness can make or break a sale.

7. What’s Next

What’s after you sell your business? Whether it’s retirement, a new venture or some well-earned time off having a plan for what’s next will help you transition and feel good about your decision.

Selling a small business is a big deal but with planning and the right strategy you can get the most out of your hard work and walk away feeling good.