If the idea of selling your company appeals to you, would now be the time to do such a thing?
Selling a startup can be both appealing and a little scary.
So, once you have decided it is time to move on from your most recent business venture, how best to go about it?
What Are the Keys to a Successful Sale?
In deciding to you want to move ahead with a sale, here are some keys on how to sell your startup:
1. Determine the time is right – The last thing you want or need is trying to sell when the market may not be right. This can be if the industry you are in is having a rough go of it. Trying to sell your startup could be all the more difficult when you are in a period of market struggles. That is why it is important for you to have a good sense of what is taking place now in the industry you call home. Understand if the struggles are temporary or on-going. While you still may be able to sell during challenging times, it can prove to be harder. Weigh the pros and cons of a potential sale now or if it is better to wait things out.
2. Thinking of employees – When you have employees under you, it is important to think about how a sale can impact them. So, take the time to consider such a thing. Will they have an opportunity to go and work for the new ownership? Will your employees perhaps move with you to any new business you are opening up or taking ownership of? Is it likely your employees are going to be left to fend for themselves? Ask these questions to yourself, and they will want answers too. Additionally, if you are having difficulties while making such decisions, you can take the assistance of a consulting firm that has experience in selling businesses. You can ask them questions regarding how to sell your business, how to manage employees’ compensations, or assist them in finding a new job, etc.
3. Will you have any say on your business once sold? – Depending on the agreement if your small business is sold, will you have any say in your business once sold? Some people end up working as consultants for new ownership. You might also decide to sell but keep a small percentage of the ownership. Decide if you want to break free from your business or have some participation with it. That would be before any paperwork is signed and money is handed over.
4. Do you have another business plan lined up? – If you have decided to sell and will be moving on from your small business, do you have something else lined up? You may have reached a point where you decide to do something different from what you had been doing, like starting a cannabis business (if interested, click here to learn more), for example. If so, this can prove to be exciting for you. It may have come down to a case where you needed to do something different in your career. You can pick up any idea that interests you. Even if you haven’t finalized it yet, take your time and decide judiciously. It should be something that won’t get off your interest as easily.
Yes, a new business challenge may have been necessary for you. No matter what you decide, make sure you will be happy and financially okay with moving on.As you move along in your business career, what might be next in the cards for you?