{"id":2070,"date":"2022-09-15T18:06:41","date_gmt":"2022-09-15T18:06:41","guid":{"rendered":"https:\/\/eblawgroup.com\/?p=2070"},"modified":"2023-02-15T18:07:13","modified_gmt":"2023-02-15T18:07:13","slug":"when-should-i-think-about-selling-my-business","status":"publish","type":"post","link":"https:\/\/eblawgroup.com\/2022\/09\/15\/when-should-i-think-about-selling-my-business\/","title":{"rendered":"When Should I Think about Selling my Business?"},"content":{"rendered":"

Part of the reward of being a small business owner is seeing your hard work pay off over the years. The many sacrifices you made for your business can all seem worth it on the day you close a deal to sell your company. But if you are dreaming of that day, it will take some work to get you across the finish line.<\/p>\n

Very few owners experience the luxury of someone approaching them out of the blue and handing them a check to buy their business. Selling a business requires many of the same steps that it takes to build a business. You need to plan, execute a strategy, and in some cases, benefit from good timing. Whether you are trying to cut your losses, maximize your profits, or move on to the next phase of your life, selling your business may be an entrepreneurial challenge all its own.<\/p>\n

Business Sales Tracking Upward Postpandemic<\/h2>\n

Small business acquisitions increased in 2021 and outpaced pre-pandemic levels in the fourth quarter, according to a report from BizBuySell<\/a>. Sales were up 24 percent<\/a> in the first quarter of 2022 compared to the previous year.<\/p>\n

More than 8,600 small business transactions closed in 2021. Businesses sold for an average of $325,500\u2014a record high that BizBuySell attributed to buyer competition for a limited number of strong performing businesses. Businesses that thrived during the pandemic were the top acquisition targets, while many owners who struggled during the pandemic said they were waiting for a recovery before making their exit.<\/p>\n

That time might be now. More business owners are choosing to sell in 2022, and more than half are citing retirement as their motivation. However, a third of small business owners said their business is currently strong. On the buyer side, 25 percent want to capitalize on emerging opportunities, in particular essential service businesses that are likely to be popular in both strong and weak economic climates.<\/p>\n

Sell Your Business (and Not Yourself)<\/h2>\n

The owners who build a business from scratch are often the heart and soul of the enterprise. They wear many hats and yet also manage to be more than the sum of these parts.<\/p>\n

While this may have been a winning strategy while you were running the business, when the time comes to sell it, you<\/strong> should no longer be the primary selling point. After all, a potential buyer is buying your business\u2014not you. They want a strong-performing business\u2014not a strong-performing owner.<\/p>\n

If your business has managed to stay up and running for years, it is probably in no small part because you were doing many things right. But you need to be able to describe what those things are to another person. In other words, the success needs to be replicable. And that means having structures, or standard operating procedures (SOPs), that answer the following questions:<\/p>\n