With the volatility in today’s small-business marketplace, you may be looking at how to sell your business. You hope the transition is a smooth and profitable process. Under an ideal circumstance, selling a business is not an easy task. Lack of sale preparation, deficient or misaligned expectations can and often do conflict with market realities. No matter the industry and sector, the key to achieving your desired outcome is an efficient pre-sale planning. The most successful sellers are extremely careful. They ensure they get the pre-sale preparation right. Here are the common mistakes and how you can avoid them.
As a business owner, personal financial planning is key to getting to the next stage of life, whether that’s retirement or just a change in direction for your own personal gain. This is where you reach the point where you ask yourself, “Is my business WORTH the amount of money that I need to transition to the next phase?” Here’s the thing, when it comes to entrepreneurs, we’re audacious. We see the mountain and we start climbing. Failure just isn’t an option. We might stumble, but eventually, we will reach the peak or die trying. But when we are near leaving, this determination before we put our business up for sale can backfire on us. Cost-cutting measures to make our business look better on paper can ultimately hurt its sell-ability. How it is possible that streamlining a business could be bad?
I was reading this report by the Exit Planning Institute, about a study on business owners and their readiness to retire. The result really surprised me! There were two statistics that I thought I needed to bring to your attention. These stats literally just blew my mind. I mean they are just seriously unbelievable!
Did you know that you could sell a business or a highly appreciated asset and not pay a dime in taxes? I know what you are thinking. Yes, it does sound too good to be true. However, this is not one of those cases. It is absolutely possible with a charitable remainder trust. Check out this video to find out how!
For most business owners, your companies are your babies. Just like your own children, you pour all you can into your company so that when they become independent from your guidance, they can stand on their own. That means when the time comes to step away from your business you can leave knowing it will succeed. One of the best ways to achieve that for a business is to devise an exit plan.
We recently looked at the dangers of streamlining a business for the purpose of selling it. Today I’m going to discuss how to increase the value of your business long before you pass the torch on… in ways that won’t hurt it. Have you ever wondered what makes one company more valuable than another despite the fact that they are in the same industry? I’m going to give you several points you can work toward achieving. However, the most vital component is honestly and planning years in advance.