If you’ve been contemplating the idea of selling your startup, are you at a point where you’re ready to move forward? Ever wondered how long does it take to sell your business? Also, have you researched what the necessary steps are to get your business ready for sale?
While selling can mean a lot of work and even a few anxious moments, it can turn into one of the best decisions you make.
That said is it time you consider saying goodbye to your startup?
Preparing Your Startup for a Sale
There can be myriad of reasons you look to sell your company.
For one, you may feel as if you have maxed out the expectations for it. As such, the only way to go is down and you want to avoid that.
Another possibility is that you have your eyes on another prize. That means your focus needs to turn there and your current startup can’t get the time and effort from you needed.
Still another thought is that the industry your startup is in is struggling and has been for a while now. As a result, you want out and onto something else.
No matter the reason or reasons behind such a proposed sale, you sense now is when to do it.
When you’ve decided to give the go-ahead to selling your startup, here are some areas of focus to look at:
1. Having your financial world in order – You won’t get too far in your efforts to sell if your financial world is a mess. That said you have to take all the time necessary to put your financial house in the best order possible. So, do you have a true idea of how much your startup is worth before trying to sell it? If not, you can opt to find out how to calculate business valuation. Doing this will help you better sense the value of your company and what you could get for it in a sale. Without such knowledge, you could get taken for a ride by a potential buyer. Having your financial world in order also means trying to cut any company debts of note. You do not want a big pile of debt hanging over your head that could scare away prospective buyers.
2. Do you have workers in the mix? – In the event you have workers, how do think a prospective sale will impact them? Put yourself in their shoes for a minute. How would you feel if you were working for someone and they notified you and others of a potential sale? To say it can be unnerving is likely an understatement. So, the goal is to be as transparent as possible with your employees. If there is a chance for them to gain employment with a new owner of the company, by all means let them know this. Do you have another business you look to open or already have in place and is open? If yes, could some of your current employees at the business up for sale work for you in your other business? By being transparent with your team, there is less likely to be hard feelings should the startup sell.
With those and other thoughts to go over in your head, decide if now is in fact the time to sell your startup.