Say you’re a counselor who gets close to retirement. You think, I’m closing my shop and that is that. I’ll cancel my web hosting and close down my site. I’ll cheers to the end and maybe take a picture or screenshot of my website for memories sake.
Stop the presses! Your website could be worth money!
Did it have a blog? Did it bring in online traffic? Those things are worth real money. They just require a few tweaks (like removing your personality from it, making it more general, and adding a way to monetize (ads and affiliate links are great).
If that sounds like a lot of work, it is, but worth it. Yet even better? Setting it up properly from the get-go as a turn-key business, ready to sell. (You can make upwards of $100,000 or more on a website sale in many cases. I like this site at Flippa.com a lot to take a look for yourself – I’m not an affiliate, I just think it’s fascinating to check out the websites for sale marketplace.)
If you’re a business owner, you should always be considering selling your business at some point in the future. Whether you’re looking to retire someday or move onto a new venture, selling your business can be a complex and time-consuming process – and financially rewarding!
With careful planning and preparation, you can set up your business to be a turn-key operation that is attractive to potential buyers. In this blog, we’ll explore how to set up your business to sell it, with a focus on creating a turn-key business and how to navigate the process of selling your business.
What is a Turn-Key Business?
A turn-key business is a business that is ready to be operated by a new owner with little or no effort required on their part. The term “turn-key” refers to the idea that the business is ready to be turned on like a key and start running without any additional work needed. A turn-key business is attractive to buyers because it requires minimal effort to operate and can provide a quick return on investment. To set up your business to be a turn-key operation, you’ll need to focus on creating systems, processes, and documentation that make it easy for someone else to take over.
Why Selling Your Business Requires Planning and Preparation
Selling your business is a major decision that requires careful planning and preparation. If you’re not prepared, you may not get the best price for your business, or you may not be able to sell it at all. To sell your business successfully, you’ll need to:
- Evaluate your business’s financial performance
- Determine your business’s value
- Prepare your business for sale
- Find potential buyers
- Negotiate the sale
How to Prepare Your Business for Sale
Preparing your business for sale involves several steps, including:
- Reviewing your financial statements
- Conducting a business valuation
- Cleaning up your business’s financials
- Streamlining your operations
- Updating your documentation
- Addressing any legal or regulatory issues
Finding Potential Buyers
Once your business is prepared for sale, you’ll need to find potential buyers. This can be done through:
- Advertising your business for sale
- Working with a business broker
- Contacting competitors or industry contacts
- Networking with potential buyers
- Utilizing online business-for-sale marketplaces
Negotiating the Sale
Negotiating the sale of your business can be a complex process. To ensure that you get the best price and terms for your business, you’ll need to:
- Understand the buyer’s motivations
- Prepare for negotiations
- Be prepared to compromise
- Seek professional advice
- Have a clear understanding of the terms of the sale
Common Mistakes to Avoid When Selling Your Business
Selling a business can be a challenging and stressful process, and there are many common mistakes that business owners make. Some of these include:
- Not properly preparing the business for sale
- Overvaluing the business
- Not being realistic about the sale price
- Failing to address legal or regulatory issues
- Being too emotionally attached to the business
- Not seeking professional advice
On the emotionally attached part… I’ll never forget when my neighborhood donut shop closed. Not because I loved donuts so much (I do though!), but because I drove by one day at the exact moment to see the owner staring at the retro lighted menu that they had had behind their counter all those years – in the dumpster.
My heart sank. I knew the owners (well, as much as popping in and courtesy chatting), but they were always so kind to me. It broke my heart to see their business closed. I always wondered if they had tried to sell it, keep it alive, or if they just let it go. I was grateful to see this heartfelt moment with the owner. I just happened to be driving by and the memory is still so clear to me. I could almost feel his feelings and his journey. Perhaps I also felt some of his relief.
Selling your business is a major decision that requires careful planning and preparation. By setting up your business to be a turn-key operation and following the steps outlined in this blog, you can increase your chances of selling your business successfully and getting the best price and terms for your business. Remember to seek professional advice throughout the process, and don’t be afraid to ask for help when you need it. With the right preparation, you can successfully sell your business and move on to your next adventure. Contact us for help getting your business set up with traffic, ads, affiliates, and valued higher, so you have a lump sum cash infusion possibility if and when you sell later. We’re here!