“I Have No Intention of Ever Selling My Business.”
Running your own business can be very rewarding. Maybe you have built your company from the ground up and have watched it grow or maybe you took over a failing business and turned it into a successful enterprise. So it is no surprise when someone asks you if you would ever consider selling your business you may reply with a big, resounding “No”. In fact, I hear this a lot from many Scottsdale business owners. And while some of them may never sell, the majority will sooner or later have to part with their business. I tell them, some day you will no longer be involved with your business whether you like it or not. Hopefully, when you do leave your business it will be on your own terms. Unfortunately, it is not rare at all for business owners to be forced to leave their business. The reasons they have to leave their business are varied. Maybe they have health problems, are facing a divorce, or have a falling out with their business partner that cannot be repaired. Maybe they are facing bankruptcy or are dealing with a bad economy that makes it so it’s not worth keeping the doors open. The bottom line is not IF you will leave your business, but When. And because of this, being prepared is key. It is never too early to consider and plan your future exit from your business regardless of if you end up using it or not. When the time does come to leave your business, you essentially have three options:
1. You can close the doors.
Obviously this is not the ideal situation, but it may be the only choice you have. Reasons for closing down your business are as varied as the types of businesses I deal with. One reason may be that the business is taking up too much of your time and taking a toll on your health and personal life. Depending on your priorities, shutting down may be the way to go.
2. You can pass your business on to a family member.
This could be a spouse, sibling, or child. Traditionally, most businesses are passed on to children. This ensures that the business remains in the family, which can be positive for future business dealings, because it gives employees and customers a feeling of continuity. Some business owners may have a hard time letting go and this can be one option to remain involved (albeit in the background) in their business. Another benefit is that your family members are more likely to be in tune with your business philosophy, as opposed to an outsider, and can continue to run the business in a manner that you approve of.
3. You can sell your business.
This option is most advantageous when your business is doing well and you desire to cash out. It is always better to sell your business when it is on an upward trend. If it is on a downward trend, selling may not be an option. If you decide to sell your business, you have several options: The business can be sold to a competitor who wants your market share and customer base. This is a great option because the buyer can greatly increase the bottom line profit of the business by eliminating redundancies.
Another option is to sell your business to a partner or employee who is already familiar with your business, the customer base and the vendors. Lastly, you can sell to an entrepreneur who sees the value in your company and is looking to take your business to the next level. Even if you still feel like you will never sell or leave your business, it is great to know your options and to make plans “just in case”. Having to shut down your business instead of being able to pass it on to a family member or selling it, of course, is the least beneficial method, but sometimes, it can’t be avoided. Be sure that either option number two or number three is how you leave your business. Even if you don’t plan on selling for a long time, meeting with an experienced Scottsdale Business Broker to create an exit strategy will make sure you are properly prepared when the time does come. In addition, I can give you insights about the current Arizona business sales market, what marketing strategies I employ, how I find buyers for your business, and I can give you an idea of how much your business may sell for in today’s market. To get a head-start and to set up an appointment to discuss your own exit strategy and the possibility of selling your Arizona business, contact me at 480-707-7721 or [email protected].