The reasoning of selling your business

Cool decision? Or exactly the flip side? Ask yourself before taking to a final decision – Why I want to sell my business?:

Money motivation – for some people can be just earning money insufficient reason, but in my opinion is this reason absolutely right. Money gives you freedom and the possibility of starting a new business.

Company development – you will get money for other development

Last step before bankruptcy – definite reason

Part of a bigger company – bigger opportunities not only for you but also for the business itself

Based on what you expect, build a negotiation strategy.

Rules to set up when selling the company

In case you decide to sell your business, you should set up a list of firm rules and insist on this list while contemplating the offers. You can postpone the selling or look for another buyer.

Think about the following things:

The minimum price of your business/ selling of the whole business or just part of it

Minimum price dedicated to the development

Number of employees who you will have to let go, number of employees who will stay, define their job and conditions

Define your own role in the business, will you stay? How long, what will be your job and who will be your boss?

Good tips

In conclusion, I would like to mention a few tips. These tips are things which helped me in the past or on the contrary I did not pay attention to them and now I can only regret it.

Write all information down

If you make some deal or just while talking promise something, write it down. You will avoid misunderstanding and other inconvenience, what´s more, you can always come back to the last point and continue with the deal. Do not trust people, it might seem that the person is fair and solid but it can easily change or this person might change the position and you will deal with someone else.

Do not prolong the deal

The sooner, the better. Very important rule. The deal about selling the business is slowing the business and the product. The proceedings are mostly very complicated, exhaustive, but it is necessary to make the deal. Specify the reason of selling, concrete goal, minimum requirements and sternly and fast finish the proceedings.

Make sure your business is well organized

Ask yourself before selling if your business is well organized. First of all your accountancy should be 100% clear. It would be very unpleasant to have skeleton in the cupboard while having the meeting with the potential buyer. Go through all document as you would do before auditing and think about unpleasant questions and prepare the answers.

Real expectations

What do you sell in real? On this depends other things. You should be on the ground but at the same time do not underestimate yourself. If you are not sure about price, you can compare your situation with other selling or have a talk with other people, who are experienced. Keep in mind that the reason, product, place, and size of the company should be similar. While setting up the price, think also about the payment conditions (complete amount after selling, split payments – when, conditions, if the whole amount will go to the founder or will be used for the development of the company/product). Do not forget that the final price is determined by trade!

Do not lie, do not overrate and promise things, you cannot fulfill. It is almost sure that someone will it find out and you will lose credibility. It might be very attractive, but really do not do it. The buyer will these frauds find out and the consequences are too severe.