How to get your company ready to sell? It is one of the first questions that undoubtedly comes to mind if you think of selling your business. Well, there are many ways to sell your company, but first, you have to contemplate as to whether it is high time to sell your business. Not many people are aware of the difference between owning a business and owning a job.
How to know if the business you own is indeed a business or a job?
It is a tricky question that requires a definite answer. If you are uncertain if the business you currently have is a business or a job, then don’t show up for a week. Watch how your business performs, even if you are not there. If its income remains the same or goes up, then you have a business – something that lets you generate money also if you are not physically there. On the other hand, if your company didn’t perform well, then that’s not a business. What you have there is a job.
Therefore, before selling your business, you have to know its value. Maximizing the value of your business is all about transitioning from owning a job to owning a business. Unfortunately, not all businessmen know how to do it. If you need help in strategizing, then you should contact Freedom Factory – the number one business brokerage firm in the world.
Freedom Factory by Robert Hirsch
Freedom Factory is a Colorado-based business brokerage firm founded by a serial entrepreneur, Robert Hirsch. Freedom Factory is designed to help business owners maximize the value of their company just in time for selling. Robert has been in the industry for nearly three decades, and he made much money helping business owners in selling their businesses. One of his expertise is to create a strategic plan for getting a company ready to sell.
Robert Hirsch strongly suggests that business owners don’t show up in their business and watch how it performs. Buyers would want to buy a business that is built on systems and processes and not mainly on the person’s intrinsic knowledge. Another strategy for getting your company ready to sell is making everything easy for prospective buyers. Create a business operations manual that is easy to comprehend not only by business people but even those who are not well-versed in the business world.
When creating a business operations manual, you have to include the following:
- Indicate the roles and responsibilities of people in the company.
- Include everything, especially letter of intent, non-disclosures, asset purchase agreements, stock purchase agreements, and the likes.
If the business you currently have is more of a job than a company, then do not sell it yet. Prematurely selling your business could hinder you from maximizing the value of your business. Work on transitioning your business from a job to a real business. Doing so may sound complicated, but in reality, it is not. You need to come up with a system that would make your business a money-making machine. If you need help in getting your company ready to sell, do not hesitate to contact Freedom Factory.
Check the Podcast of Strategies For Getting Your Company Ready To Sell