Completing a business is usually the last thing an entrepreneur wants to think about. However, the features of continuity should be spelled out at the start-up stage. Much depends on this, down to what values you will postulate in your company. The answer to the question of how you will part with your company will allow you to find out if you want to start a business: provide heirs, stop being a hired worker, or sell it later and have a fun old age.
As various studies show, start-up entrepreneurs mostly want to sell their business over time, and about 33% of businessmen think about the transfer of the case to the inheritance. Despite the initial plans for the sale, only 20% of all commercial enterprises are ultimately sold. If you are thinking about getting to the sale, here are 5 tips on how to prepare for it.
1. Preparation of documentation
If you are starting a business with the idea of selling it at the right time, then make sure to pay great attention to your documentation from the very first days. When the time comes, you will have at hand all the necessary documents, estimates, files, charts and reports to interest potential buyers. Of course, even in this case, special preparation for demonstrating the success of your business cannot be avoided, but it will take much less time and effort, and the results will be much more revealing and informative.
All your tax returns should be on hand, cost and income estimates should be as complete as possible, you should have notes on the most successful periods of the company’s operation and records of the most profitable and promising transactions.You may also need to take care of appvalley error while using this plugin.
Do not forget about your employees. All their personal affairs in the personnel department must be put in order. Take the time to write letters of recommendation for each of the most valuable personnel, describe their achievements and services to the business, and ask the new owners for your team (this way you will show respect and appreciation for the good work to them).
Prepare a written business development plan (step-by-step instructions) for the next period without you. This will increase the price of the product and help new owners quickly get in the picture (especially if the new owner is your relative).
2. Talk to your children and grandchildren.
Be sure to talk to your children and grandchildren about your decision to retire. Ask if any people are willing to change you at the helm. This will help to avoid misunderstandings, insults and even quarrels. Most likely, if he were such a willing person, then you probably would know about him, he would take an internship with you, get the first experience and be introduced to the company as an employee or manager. If such a situation does not arise, then, most likely, your potential heirs either are not eager to engage in your business or consider that this is your own business and they should not interfere in it. In this case, the discussion of a possible sale will turn into a formality.
3. Train business managers
Even during the conduct of the enterprise, select and train an intelligent and competent person to manage your business. Introduce him in the course of business, allow him to solve problems of different levels of complexity, delegate to his duties and expand his powers. Having a reliable manager will help you not only to relieve yourself and to allow yourself to go on vacation or go on sick leave from time to time, but also will make your business more attractive in the eyes of potential buyers. Your assistant may be such a buyer
4. Review your business structure.
Consider the structure of your business and determine whether it allows you to sell your business. For example, if you are an individual entrepreneur, then you will not be able to sell the business, and if it is a limited liability company or corporation, then if you have a buyer, you can earn good money from the sale.
5. Evaluate your assets.
Finally, consider your assets. Do you have debts, do you have any obligations for renting premises and equipment, or are you the direct and sole owner of the entire enterprise and everything in the enterprise? From this will depend on the amount of the transaction. People like to buy what they will own completely, and for such pleasure, they will give a good price.