It’s an honor to know that someone wants to buy the
small business you started. You worked hard to build the company from scratch.
To find an interested buyer means that you did something right. It also means
that you have a profitable business. The problem is determining what to do
next. Should you sell your business or keep running it yourself? If confronted
with this problem, these tips could help you.
Understand why the buyer wants your business
Even if you decide to sell your company,
you still want it to be in good hands. If the buyer only wants a portion of
your business, and throw the rest, you might have to say pass. You can’t have
someone ruining the brand you built. Others might sincerely see the potential
of your business, and it’s the primary motivation for the planned purchase. In
this scenario, you should pursue your plans.
Check the offer
You have to determine the offer if it’s good enough.
Consider all the expenses you spent, and how much your business will probably
grow if it stays in your hands. You’re also going to venture into other
business after closing the deal. You want to have enough money to keep things
going. If unsatisfied, you
have to negotiate. However, if you intend to sell anyway, don’t be too
picky. If the buyer changes the offer or cancel the plan, you will regret
You also have to check if there are different offers
available. Allow them to compete before closing the deal. You’re letting go of
a precious business, so you want to get its worth.
Have a backup plan
If you sell the business, you’re without an income
source. You should have a backup plan. Determine how
you will make money within the year. If you intend to be a consultant and
offer your services to aspiring entrepreneurs, you can do so. The goal is to
have a backup plan until you have a stable income source again. The amount you
gained out of the deal won’t last forever. You can’t rely on it.
Conduct a study
You need to determine if your business is better off
in your hands, or if you should let someone take over. Will you earn more in
the future, or is the offer equivalent to your company’s value? You also have
to close the deal if you believe that your business could lose money in the
future. The same is true if there are outstanding debts yet to pay. You would
rather get out now while you can. If your business starts falling apart, it
will lose potential buyers quickly.
Once you already did these things, you’re ready to
decide. Do the right thing before the opportunity goes away. You should also
avoid using your emotions to decide. Be smart and consider all aspects.
1st and featured image from https://hbr.org/resources/images/article_assets/2019/12/Dec19_31_BusinessDeals.jpg
2nd image from https://deal-studio.com/examining-the-mind-of-the-serious-buyer-5-points-to-consider/