26 Oct Around the Web: A Week in Summary
The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.
A recent article from Small Business Trends entitled “How to Sell a Business” discusses the specific steps to take if you’re thinking about selling your business.
There are many reasons why business owners decide to sell their business. No matter what the size of the business is, selling a business is a complex process and there are several steps to take before a business can be sold. Here are the 11 steps to take after deciding to sell:
- Sort out all accounting records.
- Hire a valuation expert and find out your business worth.
- Work out an exit strategy.
- Market your business.
- Put your business on the market.
- Sift through prospective buyers.
- Respect the due diligence process.
- Negotiate and close the deal.
- Hire a lawyer and finalize the contract.
- Receive payment upfront.
- Enjoy your achievements!
By following these steps, you are ensuring a smooth sale of your business and are guaranteed a sigh of relief knowing that this burden is finally put behind you.
A recent article from 1851 Franchise entitled “Exit Strategy Considerations In Franchise Research” discusses everything you need to know to create your ideal exit strategy.
Everyone entering the franchising industry needs to have a plan in place for their eventual exit. With an appropriate exit strategy in place, they can exit the system with the least amount of hassle possible when the time comes. Exit planning, according to experts, isn’t given the attention it deserves. In fact, studies show that 48% of all business owners don’t have a plan in place for when they decide to leave their company. Here’s what you need to know to curate your exit plan:
- Reasons to exit:
- Unexpected health issues
- Family obligations
- Career change
- Dissatisfaction with business
- Exit strategy options:
- Transferring the business to a family member
- Transferring the business to another franchise owner
- Transferring the business to a third party
- Transferring the business back to the franchisor
- Maximizing the exit strategy:
- The further ahead you plan, the more you can anticipate market trends and your own personal financial situation, allowing you to benefit from exiting the franchise.
A recent article from Entrepreneur entitled “Why Every Entrepreneur Needs an Exit Strategy (Before It’s Too Late)” discusses the reasons why every business owner needs a plan to ensure a smooth exit when leaving their company.
An exit strategy is a must for every entrepreneur. To guarantee that you can leave your company when you’re ready to retire or take on new business endeavors, you need to have a plan. Here’s why and how to go about it:
- You need business and financial goals.
- Your exit strategy should provide clarity.
- Know who and when.
- Keep income statements and balance sheets updated.
- Growth potential can entice buyers.
- Cash flow is key to it all.
When thinking about an exit strategy, the most important thing to keep in mind is what you need and want from it. With careful planning, you can strike a good balance between your present-day objectives and your eventual exit from your company when its value is at its highest.