How to Sell Your Business – First Steps

Preparing well in advance should always be your first goal. Ideally, you should take the first steps at least two years before you plan to complete the sale of any business. However, there are many motivations to consider when drawing up a plan of how to sell your business, and factors such as illness, bankruptcy, and corporate competition sometimes make it difficult to approach your sale with such forward planning.

What this may mean in real-world terms is the difference between a quick sale and a best-price sale.

Contingency plans put into action when an emergency arises generally dictate a quick sale at the expense of profit, whereas a well formed exit plan will help maximise profit but may take longer to complete. When you ask how do I sell my business, then it really depends on your personal reasons for selling in the first place – so make sure you get this straight from the off.

Motivations also play another important role, namely, how you plan to spend your time (and profit) after the business is sold. Are you retiring? Funding a new start-up? Taking up employment? Additionally, business owners may feel some “sellers remorse”, particularly when dealing with longstanding employees and clients. Ensuring you have a clear plan of where to go next is one way to make sure your time and profits are well spent.