20 Jan Get Over it and Get Ready to Sell Your Business
Business advisors hear this phrase often. I want to sell my business “in a few years“. I get it. Retirement scares the hell out of most people. It is hard contemplating what you are going to do after working so hard for many years. It is also very tough admitting you are getting older or are burnt out and ready to do something different.
I have one bit of advice. GET OVER IT! If you are saying this you know you need to be thinking about your next steps. So stop procrastinating and get going. Does time go by slower? Do you think the future holds more free time to leisurely plan ahead? I bet the answer is a big fat NO. Unless you see a great deal of time opening up in the future for this planning you should probably get started. You will wake up and “a few years” will be over and you will still be waiting to get started. Then it may be too late.
Almost every Business Advisor can tell you multiple stories about business owners who “died” in their businesses or had to “close them down” when they failed to plan their exit accordingly. Planning early allows you to make changes and end your business involvement the way you want. If you truly want to sell your business “in a few years” get started now.
Even if you start today you only have about 18 months “free” time at most before you are delaying your exit in “a few years”. This “free” time needs to be used increasing your business value and making the preparations so you have the best chance of selling it and for the most money possible. If you use this time wisely you can increase your business sales price by 25% or more. If you are not looking at the business value and making preparations you could be selling for significantly less money or not selling at all.
The number one reason businesses don’t sell is the buyer and seller can’t come to an agreed price. If you are building your value this will be easier to do.
A second significant fact that many business owners don’t realize is less than 35% of businesses put up for sale are sold. This means if the business is not prepared right selling “in a few years” simply may not be a choice.
Early planning and preparation is key to successfully selling your business. Get started now to maximize your business value and chance of success!
If you want to learn more about this and other important topics for business owners follow Cross Northwest on LinkedIn, like us on FaceBook, visit our web site, or email us: [email protected] for a direct response.
Cross NW is a business advisory firm specializing in helping client build value, prepare and sell their businesses for more money. Cross NW is in Seattle, Park City, and Denver.
Damon Pistulka is a Managing Partner for Cross Northwest.