Watch this video and find out what you need to do to leave your business when you want, leaving it who you want in the manner you want. You’ll be glad you spent six minutes with us doing this.
You’ve just come into my office, sat down and have gotten a cup of coffee. We’re talking about your business and you drop a bombshell. You tell me you’ve decided to sell your business.
This is not an unusual situation in my world. I often have owners come in and say they’re ready to throw in the towel. If you want to start this conversation with me, there’s some questions you can be sure I’ll ask you before we go any further.
Hi, I’m Josh Patrick the founding principle here at AskJoshPatrick. Today we’re going to talk about whether selling your business is a good idea.
The first thing I want to know is what’s changed that you want to sell your business?
Almost every time an owner tells me they want to sell it’s because something has changed. The change is rarely a positive one. Sometimes the change does signal its time to sell. More often the change signals that before you sell, you better fix the problems in your company that’s making you want to sell in the first place.
Next I want to know why you think this is a good time to sell?
Almost everyone has a highly emotional experience when they sell their business. Eventually I’ll let you tell the world, but I want to know what you’re telling yourself. If you’ve decided to sell your business because of emotional reasons it’s likely the wrong time to sell.
The right time to sell is when you’ve made a slow decision. The right time to sell is when you’re business has had a couple of years with increasing sales and profits. If your business has taken a dip, I can promise you one thing, this is not the right time to sell.
After you’ve sold, how do you plan to spend your time.?
Jack Beauregard from the Successful Transition Planning Institute calls this your second act. Having some idea about what second act means for you and how this shows up in your life is an important issue. You can be sure that we’re going to spend a lot of time talking about what’s next in your life. If you don’t have a good answer, you should probably rethink selling your business until you know how you’re going to spend your time.
A big question is are you financially ready to leave your business?
The first thing I want you to figure out is can you afford to sell your business. This should always be the first thing you do.
Second, just because you want to sell your business, it doesn’t mean there is someone waiting in the wings to buy it. This is especially true if you’re business has just had some sort of setback.
I’m a big believer that doing a financial plan before you sell your business is crucial. You’ll want to know whether you’re in a position to ride off into the sunset, or you’ll have to continue working after you sell your business. Most businesses I see require the owner to do something to continue creating income after they sell. When you learn this, you might decide it’s not the best time to sell after all.
If you’re interested in learning more about timing for your sale, why don’t you click the button below and get our Free Audio CD course on financial planning for private business owners. I can tell you one thing about this free audio cd…..you’ll learn something that’s valuable about you and your business.
Finally, is your business ready for sale?
The big question here is how involved are you in day-to-day operations. I can tell you that unless you’ve spent a lot of time teaching others to run your business you’re business becomes harder to sell. I believe your number one task to get your business ready for sale is to make yourself operationally irrelevant in your business.
The next question I ask is what is special about your business. Selling a me too business is a difficult affair. If your business has special processes or creates customers in an interesting way that is repeatable, your business has just become much more salable.
Our conversation about whether you should sell your business might go on for several hours. As with almost all of the conversations I have I’m really interested in answering the question why. In this particular case there are multiple whys and it takes a while to work through all of them.
Have you thought about the whys you’ll need to ask when it comes time to leave your business? If not, why not? You are going to leave your business someday and doing so in an intelligent manner makes more sense than just waking up one day with an overwhelming need to get out.
The whole process of selling your business usually takes a year or more to accomplish. Before starting down this very time consuming road, make sure you answer the questions in this video. If you do, you’ll be in a much better position to leave your business.
Remember, get our CD and if you’re interested in having a conversation with me about selling your business, just click on the link at the end of this video. You’ll be able to spend a little time to find out whether it’s really time for you to sell.
Thanks a lot for spending a little time with me today. This is Josh Patrick and I hope to see you back here really soon.