In the event you are leaning to the idea of selling your startup, what is going through your mind now?
Sure, selling a small business can be fraught with challenges and even some anxiety.
That said is now the time you decide to put your small business up for sale?
Have Your Finances in Order
Once you’ve decided selling is what you want to do, it would be wise to focus in on these things:
- Finances – No one wants to take a major financial hit when selling their startup. With that idea in mind, are you confident you will make all the right financial calls in selling? For one, do you have a good idea of what your company is worth? Not doing so can leave the door open to financial trouble. This is one reason knowing how to calculate company valuation is so important. In doing this, you have a better sense of what the value of your company is. This will lessen the odds of you getting taken for a ride when someone puts an offer out there. You also want to be sure that you are not carrying a load of debt when attempting to sell. Such debt can scare away potential buyers in no time at all. Do the best you can to rid yourself of that debt.
- Employees – Except where a startup owner is their company’s only employee, it is key to think about others. So, if you have workers under you, how can a potential sale impact their lives moving ahead? It is important for you to be as transparent as possible. You would want the same if you were the worker and someone was selling the company that employed you. Give your employees as much notice as possible about a pending sale. If you are starting up another business, any chance you’d offer jobs to some or all the employees you have now? There also may be the possibility where you put language in a contract sale. Such language is that the new owner offer positions to your team of workers. Think long and hard about the sale and how it can play out for your employees.
- Customers – When a sale of your company is in the works, what will you do for your customers? Given many of them have likely been loyal to you over time, reward them for such loyalty. This more times than not will lead to things such as discounts. That is if you have products you are looking to unload before closing up shop. If your biz is geared to providing services to customers and you plan on opening a new one, see if some will come with you. That of course will depend on what it is you will have to offer. Never forget the loyalty many customers have displayed to you over time. You owe it to them to say thank you for their sales and revenue.
When you have selling your startup in the works, the hope is it falls into place and you feel good about it all.