Whatever your reason, finally deciding to sell your business is probably one of the hardest decisions to make. Suffice it to say that letting go of something that you have worked so hard for is akin to letting go of a family member or loved one. Nevertheless, it is still a decision that you may have to make. If you have to sell your business, however, you have to bear in mind that timing is crucial to making a profit out of the sale.
Impeccable Timing
Just like in stocks, sell when you’re up. This means, the right time to let go of your business and sell it to someone else is when your business is still showing profits, when prospects of growth are good and when your products are selling like hotcakes. In addition, you must have a stable network of associates, suppliers, service providers and such – all of whom are vital in not only running your business properly but also in maintaining your position at the top.
Selling when you’re down and out only means that your last recourse to get out of debt is to foreclose and sell because you can no longer manage and run the business profitably. Your prospects for good buyers will be slim when this happens since no one wants to take over a business that is unprofitable and whose brand identity may be associated with flop after flop.
While your business is booming, look at the others in your industry. In fact, check the trending in your particular field. Having a successful business does not mean that your competitors are enjoying the same good fate and that your industry is, for lack of a better term, on the up and up as well. If your over-all industry situation does not look good, you might get a few buyers but you will not be earning as much as when everything is going great.
Sell to the Highest Bidder?
The great thing about selling a successful business in an industry full of promise and potential is that buyers will stop at nothing to get their hands on a goldmine. While you may be tempted to sell to the highest bidder, this may not always work out in the end.
You have to remember that if the business you are selling is something that you believe in and love, selling to the highest bidder should not be your sole priority. If you sell your business with only profit in mind, without taking into account the kind of people who will take over, you will be cheating yourself out of the fulfilment that your business could have given you. In effect, you may also be cheating your employees, clients and suppliers with whom you have built long-standing relationships.
It would be much better if you sell your business to the highest bidder who is also the best candidate to take over. Someone who will love the business as much as you, perhaps even more; someone who knows the ins and outs of the business; someone who’s not afraid of hard work; and someone who will absorb all of your employees, deal fairly with suppliers and take proper care of your clients the way you’ve always done.