As a business owner, you may find yourself at a crossroads at some point in your career. You may be wondering if it’s time to sell your business and move on to something else. It’s an important decision that requires careful consideration. Here are some things to consider when deciding whether or not it’s time to sell your business.
Reasons for Selling Your Business
There are many reasons why you might want to sell your business. Perhaps you’ve reached a point where you no longer have the energy or desire to continue running it. Maybe the market has changed and you’re no longer able to compete effectively. Or maybe you simply want to pursue other opportunities or retire from the business world altogether. Whatever the reason, it’s important to assess your situation and make sure that selling is the right decision for you and your business.
Signs That It’s Time To Sell
There are certain signs that can indicate it might be time for you to consider selling your business. If you find yourself no longer enjoying running the business, or if it has become too much of a burden, then it may be time to move on. Additionally, if sales have been declining steadily over time, or if there is a lack of growth potential in the industry, then these could also be signs that it’s time to sell up and move on.
Factors To Consider Before Selling
Before making any decisions about selling your business, there are several factors that should be taken into consideration. First of all, what is the current market value of your business? This will help determine how much money you can expect from a sale. Additionally, what kind of tax implications will there be from selling? And finally, what kind of legal advice do you need before going through with a sale? All of these questions should be answered before making any decisions about selling your business.
Benefits Of Selling Your Business
Selling your business can bring many benefits both financially and emotionally. Financially, if done correctly, a sale can bring in significant amounts of money which can then be used for other investments or retirement funds. Emotionally, selling can provide closure and allow you to move on with new opportunities in life without being tied down by an old venture that no longer brings joy or satisfaction.
At Murphy Business Sales, we understand the importance of getting it right when it comes to selling a business. We provide comprehensive advice and assistance to business owners who are considering selling their businesses. By taking into account the current market value, tax implications, and other potential factors, we can help business owners make the best decision for their particular situation. We are also here to assist business owners in the process of selling their businesses. We can help find buyers, negotiate a fair price, and navigate the legal and financial aspects of the sale. We are there to ensure that business owners get the most out of their sales and make the transition to their new venture as seamless as possible. Contact Murphy Business Sales today to get started!
How often do you find yourself looking for that important – yet somehow misplaced – piece of paper? Do you promise yourself that you’re going to become better organized, but find the days, weeks and months slipping by with too much work to do and not enough time to start that new filing system or categorize your overflowing email messages?
Everyone can benefit from good time management skills, but these practices are particularly valuable for entrepreneurs, who typically wear many hats on any given day and don’t ever seem to have a second to spare.
Here are some tips that successful small business owners and time management experts have shared with us:
The best and the worst of times –To better assess what changes might be most helpful for you, it is crucial to understand how you spend your time each day. Where are you not making the best use of your time? Another way to approach this is to note what you are doing differently on the days you find yourself most productive.
Are you diligent at daybreak or mentally best at midnight? Do you need solitude and a deadline to focus, or do your best ideas seem to be found after social interaction or when you’ve taken the time to simply let your mind wander? But it’s Leap Year, so I got an extra day – Every day has 24 hours, and there’s nothing you or I can do to modify that. It is up to each of us to manage our behavior: it’s the only way to better cope with the finiteness of time.
Eliminate those distractions that are not helping you become productive. Find a system that works to help get – and keep – you on track (there are many available, so choose something you feel comfortable with and will use). Set realistic goals toward better time management. Streamline your inbox and organize physical and electronic files of information.
Routine tasks need handling, but perhaps they need time limits. A perfect example of this is reading and responding to email. If you keep an eye on incoming email messages all day long and then stop to respond immediately, there might be room for improvement by simply limiting the times you read and reply. Many small business owners put email at the top of their list as an area that truly needs better organization and time management. What’s really important – Make that decision and prioritize each day accordingly. Many small business owners feel they accomplish more if they begin with the most difficult challenge. Usually this is the very task one wants to avoid but by facing it first, with fresh energy and a clear mind, you might find it wasn’t so bad after all. When using this approach, deadlines are often met ahead of schedule.
Let someone else do it – Determine which jobs could or should be outsourced, and then allow someone else to do the work. Tedious or simple tasks could be contracted out to free up your time for something more precious, and those areas that fall outside your comfort level and areas of expertise should definitely be left to the professionals.
Just say “no” – Only you can decide where your time should be spent. In addition to running your company, you want to ensure you enjoy quality time with family and friends. Most entrepreneurs are also involved in their communities, which is a wonderful way to serve others while networking to help grow their companies.
But, how much time do you really have? Many self-motivated business owners find it difficult to turn down requests to serve on boards or volunteer in other capacities. By thinking about your time restraints in advance, and realizing how much energy will be required for various community activities, you might find yourself making different choices going forward.
This pie is always being cut in different proportions: one year may be a great one for volunteering, as your youngest child heads off to college; another year might be too busy with helping your parents move, hiring new employees and wanting to spend more time with your spouse. Be true to yourself as you give of your time and talents. What I need most – Don’t neglect spending time just on you. Understand your physical and mental limitations and respect those times you need to take a break. When you find your schedule slowing, embrace it (that might be a great time to review your progress and switch priorities).
One final note is that some flexibility must be considered with anyone’s schedule, but by spending a few moments each day organizing and staying on track, you are creating habits and routines that will enable you to stay calm and focused as you manage your small business (and your life!) now and in the future.
The buzz is that if you are a Baby Boomer and you want to sell your business in the next few years, then you are in the majority. You are not the only Baby Boomer and will possibly have your business compete against many more similar businesses in both model and industry. In order to be well-prepared, you will need a proper valuation. Establishing a baseline value of your business will help you overcome weak areas that keep you up at night. Why would a buyer want to buy your problems? Some savvy entrepreneurs will want your problems, but most will not.
Check out our short video on the different types of Valuations.
Roger Murphy, our CEO, explains the different types of valuations we provide.
Ho-hum, you may be thinking. Or, boring. Maybe even, when can I possibly fit this into my hectic week?
As an entrepreneur, you are an extremely busy individual who probably shoots from the hip more often than not. So, do you really need to take the time and effort to put a business plan in writing?
Almost every CEO and business consultant in the country would answer with a resounding, “Yes!” The importance of a business plan cannot be overemphasized; however, the plan should be carefully considered and comprehensive and objective in nature.
Many entrepreneurs are quick to write a plan if they are seeking external financing, but the reality is every company needs a plan.
Having a good business plan in place will help you stay focused and achieve the goals you have set.
The U.S. Small Business Administration notes that “a business plan should be a work in progress.” Conditions change every day. Our national economic climate is not what it was ten years ago, and your local business environment has more than likely changed in the last few years. Factor progress or decline in your specific industry into this mix as well.
Focus on what makes your company special: what niche does it serve? Think about where you want your business to be in one year, five years, ten years.
What should be included? An executive summary that states the intent and purpose of the company; a thorough description of the business (including information on marketing, human resources, policies, procedures and competition); financial data (P&L statements, balance sheet, list of equipment); and any supporting exhibits (including resumes of principals, lease agreements and other legal documents).
Time spent today creating a business plan is definitely a solid investment in your company’s future.
The biggest financial transaction in a private business owner’s life is likely the sale of his or her business. Although many transfers are predetermined, others result from unplanned events, which is why it is essential for business owners to have an exit strategy.
Operate your business as if you are going to sell it. Most owners assume they will operate the business until retirement. But their priorities or interests could eventually change-or be forced to change due to unforeseen circumstances such as illness or disability.
Timing is everything. The best time to sell your business is when you’re on top. The company is doing well and the industry is flourishing, and next year looks even better. Cyclical factors are important, for example in retail most revenue is earned in 4th quarter. Sell in 1st quarter of next year to show good revenue and the inventory is at lowest point.
Market conditions will also have a significant impact on your ability to sell a business and the value that you will ultimately receive. The supply and demand of businesses vary over time and across industries. Current and anticipated market trends and tax policies may suggest the optimal times to sell as well as availability of bank financing. An Experienced Business Intermediary will be able to advise you on the current market conditions.
Today we are offering a wish list for a typical seller of a small business. Entrepreneurs who are selling their companies, as well as those looking to purchase, generally agree on what would make the process more seamless overall.
What the seller wants:
A qualified buyer – This not only means someone with the financial resources to meet a down payment and secure financing, it also describes someone with experience owning or managing a business — perhaps with some knowledge of the industry itself. A qualified buyer more than likely has established ties to the geographical area and if married or in a domestic relationship, has the support of his partner.
An appropriate offer – A seller appreciates an offer that is solid, reasonable and timely. Sellers expect contingencies to be a part of the offer, but also anticipate these to be realistic. One of the most common contingencies is a lease transfer with equitable terms for the buyer.
A practical due diligence phase – Sellers are pleased to answer questions and share pertinent data during the due diligence phase; however, buyers should take care not to pose queries or make statements that may be perceived as an insult to the seller. Common sense should dictate how the buyer should best introduce discussions on past decisions the seller made or how the business is run on a daily basis. Buyers should prepare their due diligence requests in writing and as soon as possible after the offer has been accepted.
A smooth closing – The closing should be a time of celebration for both parties, not a time for second-guessing, bickering or hesitation. Hiring a closing attorney experienced in the business transfer process helps immensely. By the time everyone is seated at the closing table, all questions should have been answered, all pre-closing paperwork completed and the buyer and seller should be confident this is a win-win situation for everyone involved.
An efficient transition – Most sellers, particularly those who created the business from the ground up, truly want to see the business continue to grow and prosper. Sellers want their buyers to be successful, and most will work hard to ensure the buyer is completely comfortable with all facets of the business during the training period that begins after the closing. This transition phase often involves introducing the new owner to suppliers and customers and showing the buyer everything related to running the business, from how to operate office equipment to the best way to manage employees’ schedules.
As a business broker, I have most enjoyed working with buyers and sellers who are forthright, reasonable and agreeable. Having realistic expectations on both sides and keeping a professional and positive attitude throughout the business transfer process goes a long way toward reaching a successful closing.