As a Maryland and New Jersey based business broker I found Chris Mercer’s article, “Seven Questions for Highly Effective Business Transitions” a useful guide for myself and certainly for my current and prospective business owner clients.
Before you go any further, I’d like you to look at the following if you’re considering selling your business.
Please click here for a downloadable e-book, “ 10 Ways to Increase the Value of Your Business“.
The Seven Questions: My comments are a little different than Chris’s.
1. Is your business ready for sale? Most are not. Since many of the reasons for selling a business happen quickly you should always keep your business ready for sale. Profitable, transferable, quality continuing customers, growth.
2. Are you ready for your business to be ready for sale? Probably not. Emotionally and in terms of legal and tax preparation.
3. What is business value all about? See 1. above and buy my book, “11 Secrets to Selling Your Business”
4. Do you treat your business as the (major) investment that it is? Read Chris’s book The One Percent Solution.
5. Will your buy-sell agreement work? They often don’t. Do not assume everyone will behave well and do what you hope.
6. Are you ready to make a successful transition happen? Attitude and motivation. Are you really ready?
7. What will you do after you sell or transition or graduate? Determining this often resolves the biggest barrier to really doing the other 6 steps properly.
Start today. Think this through. Good luck.