Many business owners may think that the tough part is over once they make the call to sell their business. While there is no doubt that making the decision to sell can be hard, there is still work to be done. Owners must adapt their business environment to ensure that the business can run without them. Working with an experienced broker to evaluate your business and determine how to best move forward can make all the difference as a company shifts towards new leadership.
Thinking Of Stepping Away?
Most owners feel like no one knows the company like they do. After all, you’ve put your blood, sweat and tears into growing this business. But when the day does come that you need to step away, you can start by asking these questions:
- Are you the primary reason for your company’s ongoing growth?
- Have you built a management team that understands your company inside and out?
- Are the processes that make your business tick documented, or do they reside solely between your ears?
- Have your books and financials been kept in order?
How you answer these will depend on how difficult it will be to reduce the organization’s dependence on you. For help, a trusted business advisor like our experts at Transworld can help you loosen the reins to help your team function without you and work to make your business more attractive to a buyer, ensuring your exit is financially beneficial.
How to Reduce Dependence on You
Concerned that you are too deeply enmeshed in the day-to-day activities of your company to successfully walk away? An excellent place to start reducing that dependence on you is by documenting processes for your business and delegating responsibilities. From there, here are some steps you can take to start to wean yourself away before you sell:
Build a strong management team—Do you have leaders you trust to keep things running smoothly if you aren’t around? If not, start taking steps to develop a good management team who knows the processes behind your business, from handling the books and payroll to ordering supplies and dealing with employee and custiner issues. Be sure that your customers have the phone numbers of multiple employees, and not just you.
Boost the confidence/capability of your team—Maybe your team is strong already, but have you made them feel empowered and capable? If you haven’t shared with your employees and staff that you trust in their abilities, now is the time to do so.
Spend less time in the office—Once you have built a strong team and you know that they are confident in running the show, you need to start stepping away from the day-to-day business activities. This allows the business’s other leaders to test drive how well they do when you are not available.
Prove To Buyers the Business Can Operate Without You
No doubt, this is a painful reality, but to ensure your business sells for the highest possible price, you must prove to a new buyer that the company can operate without you. Anyone who has sent a kid off to college will understand this process. It may be hard to step away, but if you have done your job right, the company (like your child) will have the tools to succeed independently.
Here are some actions to take:
- Delegate responsibilities to trusted employees
- Develop a succession plan
- Detail your company’s processes and procedures
- Implement any necessary new technology
A final note about technology. Today’s world is digital. If you haven’t already brought your business out of the analog realm, that should be top of your to-do list before selling. Start by updating your POS system, digitizing all your processes and moving your operations online or to a cloud-based system.
If you would like to learn more about the selling process, reach out to the experts at Transworld Business Advisors. We can help guide you through the process from start to finish. Schedule a FREE consultation today with us by clicking HERE. And be sure to check out our business valuation calculator to understand what your business might be worth.
