What Should You Be Prepared for BEFORE You Attempt to Sell
Most of the business owners, clients, aspiring entrepreneurs, or the many ambitious humans we interact with on a daily basis ask us how to go about selling their business. At Impact, we are the Oklahoma Business Brokers who go above and beyond to supply you with the information you need to reach your goals, whatever phase you may be in. Whether you are buying a business, selling a business, or you simply want a consultation to see what the next step is, we can help. That’s why we have other articles and resources for you to understand exactly what type of contract sales you can actually get when selling your business. However, today I want to talk about the actual information that you are going to need to even begin the process of selling! Buckle up. Take notes. Get ready!
- You Must Know Your Numbers…. Or Gather Them NOW!
If you are reaching out to any brokerage firm, or you are even going to begin to pitch selling your business to a buyer, you have to have your financials. You need to know exactly what your income is, what your expenses are, and the longer you have a track record of these things, the better. At Impact Business Brokers, we recommend that you have at least 24 months of bank records and all expenses. Simply hiding certain expenses, income, receivables, payables or hiding anything at all is unethical. This doesn’t give the buyer actual real insight into your business and it can potentially cost you a lawsuit down the road. Simply do not get into that world. Be transparent with your finances and the more you give the better!
- Do You Have Intellectual Property?
Another thing that can make your business more attractive to a potential buyer is the idea that a manager is in place. If you have an existing acting manager and you are looking to sell the business, your business is worth its weight in gold by an active manager that is willing to stay regardless of a sale. Most owners and most buyers find a business more attractive when the personnel is already in place and they are competent, willing to work with new ownership, and they add value in other ways. This can be in the existing rapport and relationship the customers have with the manager and staff, knowing how the business works, and so much more. The fact is, any intellectual assets you may have built into your manager, that is something many buyers want to capitalize on. This truly makes the idea of buying and selling businesses extremely attractive for clients just like you!
- What Are Your Systems and Processes?
Finally, one way to make your business attractive to buyers if you are looking to sell is making sure that you have your I’s dotted and your T’s crossed. We go above and beyond in every way to help you achieve this. If you need help getting certain systems and processes in place, guess what, our brokers have the knowledge and the resources to do just that. Our job is to make sure that we can supply you with everything you need to not only be prepared for selling your business, but the ability to make what you want and more out of the negotiations. Quite frankly, no business is attractive to a buyer, or at least most buyers if everything is simply all in your head. You have to get it out on your head. You have to get it on paper. You have to have some type of process that exists outside of you. If you are your business, the unfortunate part is you have inadvertently created a job for yourself. Let us help you get out of that.
There is Something Valuable in What You Created!
If you have none of these things in place, it doesn’t mean that Impact, we are the Oklahoma Business Brokers who will not work with you. It simply means that the process of your sale will take longer, because we have to work with you one-on-one. We have to consult you, we have to help you gather all of the details and the resources to even begin the process of selling your company. The best thing about Impact Business Brokers, is the fact that we do all of this prep work, for free. During your first initial consultation with our brokers, we will sit down and assess the business and see what you have that is valuable, and what needs to be fixed. The reason I am relaying this message to you, is because these are the three most common things that slow the process down. Above all else, you must have clear financials. I cannot stress this enough and feel the need to repeat, and keep repeating. Your finances must be clear, honest, and concise. The rest we can help you with!
Selling a business isn’t nearly as complicated as most people think. We encourage you to assess your business, find out exactly what is in place for you when it comes to options for selling your business. The fact is, our job at Impact we are the Oklahoma Business Brokers, is sometimes just to give you the hard truth, even when you don’t want to hear it. For example, if you have none of your finances documented, and you really don’t have a clue how much profit you have made, that makes it very difficult to pitch to a buyer. Furthermore, if all of your systems and processes are in your head, and you don’t have an active manager, that doesn’t mean your business is not sellable, it just means you may be a little more involved for longer than you originally thought.
Save yourself some time. Make a goal to have all of your financials in one solid place that is easily accessible with a three week deadline. Three weeks is very possible for you to block out time, sit down, gather every credit card statement for the past two years, every bank statement for the past two years, go through your billing and see exactly what is owed to you, and we even suggest that you go through your invoices and make sure you have no outstanding debt that is looming over your head. The act of doing this is very possible if you block out time over a three-week period. Contact Impact so our Oklahoma Business Brokers can help today, and see how we can help you get the process started on selling your business. If you are looking to buy, check out our active listings and see how we can help. Visit https://businessbrokersoklahoma.com/ or call 918.216.0520 to begin the process today!