02 Jun Around the Web: A Week in Summary
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A recent article from Inc. entitled “Selling Your Business? 7 Founder-Recommended Best Practices to Follow” offers tips from entrepreneurs for entrepreneurs who are looking to sell their business. These tips can help make the complex process of selling a business smoother and more successful.
These tips include:
- Start the planning process 2-3 years before you intend to sell
- Fine tune business systems and strengthen employee training
- Get a business valuation so you know what the business is worth
- Assemble your financials and have them audited by a CPA
- Check your emotions at the door
- Set the business and new owner up to succeed
- Know what your post-sale plans look like
A recent article from Entrepreneur entitled “Sell Your Company For a Higher Price By Telling a Better Story” discusses the importance of telling your brand story when selling and how to go about doing so. Telling an authentic, heroic story can help attract the right buyer who appreciates the business and wants to be a part of it.
The first step is to get a firm understanding of your business’s story arc. This tells where the business was, the challenges it faced, how it overcame them, and where it stands strong today.
The next step is to refine the story and distill it into something that can be told in 10 minutes. Spend some time getting it right and make sure you include the ups and the downs so that it is a realistic story.
The final step is to practice telling the story. Share it with some trusted confidants and ask for their feedback. Use this feedback to put the finishing touches on your story.
A recent article from Fast Company entitled “5 things I wish I knew before selling my business” shares reflections from a business owner about selling her business. This owner discusses what she learned and what she might have done differently now that she has gone through the sale process.
This owner was not planning to sell but decided to act on an acquisition opportunity. Looking back, she shared the following advice:
- Hire an experienced transaction professional who will drive the sale process
- Understand what your business is worth (typically a multiple of EDITDA) and if you have time take action to increase value before listing the business for sale
- Get a firm grasp on the costs of selling such as broker commission, attorney fees and taxes
- Choose an attorney who is experienced with business sales or M&A
- Have a plan in place to educate your team on the changes coming and be honest with yourself about the changes you will experience