Have you ever had those days where, as much as you love your business, you need to sell it, like NOW? Selling a business is not easy and promoting a business temporarily is more challenging.
The number one mistake business owners make -and I’ve been there too- is believing that they can sell their businesses quickly. They underestimate the time it takes to prepare, market, and close a sale.
If you think the sale of your business will be done and dusted in just a few months, you may want to adjust your expectations. Ideally, even with a well-prepared business, the sales process should take 6-12 months from preparation to closing.
If your business isn’t immediately appealing to buyers, exit-ready, or not valuable enough for you to want to sell it, which is true for about 80% of businesses, the timeline could extend to several years, rather than months.
“The due diligence was intended to last 90 days, but it took more than 6 months. Even with transparent finances and proper procedural documentation. It’s no one’s fault, but once the lawyers step in, things slow down. Nathan Hirsch founded and sold Freeup. net and now runs Outsourceschool. com
Understanding how to prepare for your exit is critical. Without the right strategies, implemented in advance, you run the risk of lengthening the sales process or having to make concessions on the price.
If you’re unsure about the right approach, don’t worry. This article will guide you on the appropriate time and method to plan your exit.
Before taking the bold step of selling your business, it’s crucial to have a well-thought-out plan. This will not only ensure a smooth transition but also help you maximize your profits.
“I would like to say that I do my business with an exit plan in mind. But actually, it didn’t happen to me until around 12th grade! Now that I have another business, their business style is radically different because I am at another level in my life. Homeowners want to plan for this, too. Leona Watson, outgoing founder of Cheeky Food Events.
Here are 5 steps to sell a business fast:
These steps, if followed diligently, will put you in a favorable position when it comes time for your business.
The adventure of preparing and promoting your business at the maximum price begins the moment you write your business plan. Companies that are designed to sell other methods of expansion and set up the business in such a way that the promotion procedure will be much less difficult in the future.
“We build all our businesses to be sellable from day one. Even if we don’t want to sell them. That means clean financials, great team and processes, and a backbone of SEO.” Nathan Hirsch founder of Ecombalance.com, accountsbalance.com, nathanhirsch.com and trioseo.com.
If you want to know if your business is sellable and how you can improve its value, here’s a quick assessment you can take.
A business that runs smoothly and effectively is attractive to potential buyers. Strive to ensure that your business is effective and that all processes are well documented. Your team can triple your asking price, so have a team that executes operations and second-level control that you can trust.
“Three things we never skimp on for our startups: the lawyer, the accountant, and the critical software. When you sell your business, you want to act quickly. These 3 elements shape the backbone of your operations. Melissa Kwan, expired entrepreneur and current co-founder of ewebinar. com, profitled. fm and melissakwan. com
Timing your million-dollar business exit is an art and it significantly impacts the outcome of the sale. Ideally, you should sell when your business is thriving and market conditions are favorable. Avoid selling during a market downturn or when your business performance is subpar.
With 2,400 businesses for sale each day, we find ourselves in a buyer’s market lately, a market that will likely last at least another decade. There are more businesses for sale than there are buyers looking to purchase. When they have the luxury of choice, you, as a seller, will have to create a business that buyers can’t resist.
Tip: Don’t wait until stocks are out or the market is down. Stay informed on industry trends and seek professional recommendations on the most productive time to sell. By planning ahead, you will sell your business on your own terms.
Exited business owner and current CEO of Create & Grow Georgi Todorov testifies that exiting fast is possible when you are ready and the market time is perfect:
“I sold my online business in a month. But that’s because I had all the main points prepared beforehand. Additionally, I am proactively searching for a potential buyer.
Having all your legal, financial, and operational documents organized and available smoothly instills confidence in prospective buyers and will make your life less stressful once the selling process begins. Having your documents in order also increases the price of your business.
“I think the smartest thing I did was implement a reward system for documenting processes and made it a competition with staff, with random prizes given out. Every week for 6 months a new process was documented across all areas (Sales, Ops, Finance, Tech). The team owned the creation, the implementation and the updating. When I went to sell years later, the operational documents were all ready. It made us look professional, organized and best of all…valuable.” Leona Watson, ex Founder and CEO of Cheeky Food Events.
A comprehensive transition plan, made upfront, makes your business attractive to potential buyers. It demonstrates your commitment to ensuring a seamless change of ownership.
Tip: Write a detailed plan that outlines how the new owner will take over the business.
So when the feeling that you must sell your business now arises again, be prepared.
Prepare your business now to sell later for its value.
One Community. Many Voices. Create a free account to share your thoughts.
Our network aims to connect others through open and thoughtful conversations. We need our readers to share their perspectives and exchange concepts and facts in one space.
To do this, please comply with the posting regulations in our site’s terms of use. We summarize some of those key regulations below. In short, civilized.
Your post will be rejected if we notice that it seems to contain:
User accounts will be blocked if we notice or believe that users are engaged in:
So how can you be a user?
Thanks for reading our community guidelines. Please read the full list of posting rules found in our site’s Terms of Service.