How To Sell Your Small Business For The Highest Value Possible

Two focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. For some entrepreneurs, the goal is not to own a business indefinitely. In many instances, the goal is to ultimately sell it. The following contributed post is entitled, How To Sell Your Small Business For The Highest Value Possible.

* * *

Source (CC0 License)

The secret to good entrepreneurship is learning when it’s time to let go. Some of the wealthiest and most successful business people on this planet made their careers by making companies and selling them for way more than their initial valuation. With these profits, they invested in other things – like new business ideas – and the cycle started again.

If you own a small business and might be inclined to sell it, how can you do so for the biggest value possible? We go over three core ideas that’ll ensure you get as much money as you physically can.

Step 1: Sell at your peak

You’re never going to get a good valuation for your business if you sell when things are rough. You need to demonstrate clear evidence that your business is successful. This means financial records showcase your profit margin is getting wider and wider each year.

It’s like buying and selling stocks – you want to sell when the stock price is at its peak. The same goes for your business; when you feel as though you’ve reached a ceiling or are performing as best as you can, that’s the perfect time to sell. You’re selling a successful company that generates profits, meaning loads of entrepreneurs will be interested. This level of competition creates more value for your company as they all want a piece of it.

Step 2: Pick the right time

While this may sound similar to the first point, it comes at it from a different angle. Yes, the right time is when you’re at your peak – but what about the economy? Is it a smart idea to start selling businesses during a recession?

No. The ideal time is when the economy is in a good place and there’s a thriving market for businesses like yours. The second half of that line is very important – when the market demands are in favor of a company like yours, you can secure a massive sale price.

Step 3: Find the right way to sell

Clearly, selling a business is a huge endeavor that requires lots of moving parts. As a result, the only way to sell it should be through a legitimate business broker.

Brokers will help you get more money from your sale as they can handle negotiations with entrepreneurs or other businesses. They’ll also have a catalog of potential buyers that may be interested in what you’re selling. This is beneficial as it means the sale process can go a lot faster. It removes worries that the economic climate might change or your business may start dropping off before you sell it. If you want to sell quickly and get the best possible price, a broker is where it’s at.

Saying goodbye to your first business will feel very emotional. But, this is just the start of your journey. Or, who knows, it could be the beginning of an early retirement. Maybe you get so much money from selling your business, you no longer need to work anymore. After all, that’s the dream, right?

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.

Leave a Reply

Your email address will not be published. Required fields are marked *