Whether you’re considering what the next chapter looks like for you, or you’ve made a decision to sell at some point, preparing for an upcoming sale will test your courage, patience and emotions. Your mindset must shift from being the owner-operator to being the owner-seller. These are two totally different perspectives, and you will make mistakes. The daily grind for you has been a consistent focus on growing top line, reducing expenses and leaving your customers with a great feeling doing business with you. The seller’s mindset is crafting a story your business’ future is brighter than ever with or without you; you cleared a path forward for the new owner to realize success; you’ve teed up your business so a buyer would be foolish not to buy it!

Every business case is different with no two identical. Every owner and every broker, advisor, investment banker and buyer will make mistakes during your sale – it’s inevitable. No one wants to and no one’s trying to take advantage of either party. If you can step into a process with humility, clear and concise communication the likelihood of not selling or re-trading your business is minimal. Here are some fundamental mistakes owners make when selling their company.

Business owners are not professional business sellers, even if you’ve sold 2 or 3 businesses. I’ve sold 3 businesses personally and kick myself in the ass for the mistakes I’ve made! Some owners fall out of love with their business; even more so when family doesn’t want anything to do with your life’s work. What put food on the table, a roof over their heads, better education than most and nice vacations goes unappreciated and ungrateful. You may not think strategically or tactically lacking common sense in a sales process. Financial recovery is too long and difficult. Many owners grow tired of the hard-to-find work in cultivating new customers. Many owners believe selling now is the only answer regardless of where they are operationally and financially. There’s no silver bullet! What’s an owner to do?

The great Die-Hard philosopher, John McClane said, “Be prepared son, be prepared.”

Many owners are stuck thinking about and procrastinating about the next chapter. Stress and anxiety build. Add the family dynamic and those feelings are exponential. You’re going to exit one way or another. Let’s look at the three focus areas where owners get stuck.

1. They fail to plan for an eventual sale
2. They lack understanding of how to sell and present their business for sale
3. They don’t or won’t see what’s necessary, because they can’t take their eye off the ball as the business is so dependent on them… so, what’s the answer?

Have a conversation and get ahead of your unique situation. Virtually every advisor will offer a confidential complimentary conversation much like attorneys and financial professionals. Think strategically now – an accountant isn’t going to help, an attorney could, but won’t and a wealth advisor may but, they only win once you sell. At JSP, we understand the dynamic and it’s our relationship network that pulls those professionals and more under the tent with you to draft the best possible team to sell your business in achieving your personal and professional goals and objectives. You’re the GM of Your Team, Inc. and we’re the quarterback of that team. We coordinate all the big and little things you can do now that pay million-dollar dividends when you sell.

You can do a lot without our help, but do you know what to do? Then, why haven’t you done it already?

Time is the greatest currency, and it can be favorable or unfavorable for you depending on what you do with it. Inflation exists, world events can and do occur and status quo moves your enterprise backwards. Every business owner must always have a growth plan under execution. If not, then it’s our role to guide you with one. We identify and evaluate what’s needed to grow forward with the goal to grow smart so you can sell smart! We uncover what’s working, what’s not and fill in the gap with you. The successful buyer wants to see potential in future growth and that’s why they buy businesses based upon the future potential.

You can do a lot without our help, but do you know what to do? Then, why haven’t you done it already? A buyer will ask you the same question. You need someone who gets it – it’s pattern recognition and we’ve been performing it day-in, day-out for decades. Operating your business is different than preparing your business for sale. Owners deal with 80% of problems, 20% of the time, because they’re the expert in the room. You may think your changes have meaningful impact, but in a business case, they don’t. This is not self-serving BS, it’s reality. There’s art and science, disciplines and process steps to implement passionate amateurs will get wrong.  You’ve got one shot to get this right creating generational wealth. Communicating a clear, concise path forward is more important than clean financials. Your buyer is gambling on future potential …the conversation continues…

 

Are You Ready to Sell Your Business?

Our initial conversation is complimentary, confidential and we’re not going to sell you anything. You need an impartial sounding board regardless whether you invite us to help you or not. We will listen intently, give you an honest answer of what your business may be worth, why we believe that, what you can expect from a sales process to achieve your goals and objectives. Your first step is to simply ask us. Thank you for considering JScott Partners. Call (205) 482-2177