In this video, we talk about "the why" being so crucially important. We all want to sell at the top of the market, and at the peak of it's performance, but what if one of life's unexpected challenges get's in the way
"Every business owner needs to think about the "why", so that when that time does come in the future they are that much more prepared and this preparation can potentially be the difference between hundreds of thousands or even millions of dollars"
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Last week we spoke about the 4 most important things that every business owner absolutely must consider. Especially how crucial “the when” will you sell your business actually is and that selling at the top of the market, and in the peak of its performance is key to maximising your return, as business brokers we see this all the time.
Now let’s talk about “the why”, why will you sell your business? When the time comes in the future, and it will, it’s simply a fact of life. What if one of life’s unexpected hurdles becomes the reason you will sell your business, and what will you do about it?
I know that I want the reason for wanting to sell my business to be on my terms, I want that reason to be commercial, to maximise my sale return. Unfortunately, life can get in the way. Partnerships breakdowns, personal relationships, health of yourself or someone close to you, new additions to the family, are just some of the most common reasons why we see business owners take their business to market with little to no exit planning. And what do you think a business without exit planning will sell for compared to one that is prepared?
On the other side of the coin I can sense you thinking it’s almost impossible to have your business at a constant state of readiness to sell. But there are some really easy things you can do in your business to make sure that if one of life’s hurdles becomes a priority and becomes the reason you decide to sell, your chances of selling your business quickly, and at the best price will be much higher.
Firstly, review your record keeping policies. Make sure that all of your records, financial, operational, intellectual and premises records are in the one location, that you can access quickly. If you have boxes and boxes of files? Get them scanned and stored electronically. This can take some time to do, so why wait until it’s too late.
Secondly, try and stay in touch with the market, so that you are familiar and comfortable, it will make your unexpected business sale that much easier for you. You can do this in just a few minutes every month, by going online and see what similar businesses are selling for. You can also have your business valued by a business broker every 12 months, this is a great way of keeping an ongoing relationship with a broker, as they can really help you expedite the sale in a time sensitive circumstance.
Thirdly, think about how replaceable you are? If it’s something you want to do and your business allows for it, try and scale back your roll in the business by 1 or 2 days, and handover some of your responsibilities to a key staff member. The easier you are to replace, and the better skilled the staff, the easier and faster your business can be to sell.
If you are able to execute most of the things we have just talked about, it can shave months of the time it takes to sell your business, so if that time comes unexpectedly, you are really prepared to deal with a business sale, and still maximise your return.
Please share this with anyone you know that is a business owner. From all of us at Vision Brokers and Advisors. Thanks for watching. Bye.