|
by Tom West
Back to
business opportunities articles index
A survey of business activity nationwide
shows that many sellers are taking advantage of
the window of opportunity offered by today's
favorable marketplace. In this recent survey,
almost one-third of business owners responded
that they are considering the sale of their
business. The first question one might ask,
given the relatively healthy financial climate,
is WHY? Selling when times are good? The answer,
for many sellers, can be a resounding YES! Here
are some of the reasons why, followed by tips
for getting the process started.
The Buyers Are Out There: The current
economic upturn has depended to a great extent
on trimming the corporate fat. Executives and
middle managers out of work--and determined not
to be "downsized" by big business again--are
eyeing the advantages of being in business for
themselves. Since 1990, the percentage has
steadily grown of those corporate executives who
leave jobs in order to become independent
business owners. It isn't just the money they
are dreaming of--it's the desire for more
control over their lives.
How to find these buyers? The business broker
is the professional to whom sellers turn when
looking for serious, "qualified" buyers. The
business broker not only helps match the right
buyer with the right business, but also educates
the buyer in the buy-sell process, alleviating
concerns and keeping the transaction in steady
forward motion. With plenty of buyers to choose
from in today's market, it's more important than
ever to identify the time-wasters and those who
think they want to buy but really aren't ready
to take the big step.
It's Better To Cash-Out Than To Burnout:
Burnout can come with a business that's
successful as well as one that's failing to
grow. The right time to sell is before the
syndrome becomes a threat to the effective
management of a business. What are the warning
signs of burnout?
That isolated feeling. The burnt-out owner
has been "chief cook and bottle washer" for such
an extended period of time that even routine
acts of decision-making and action-taking seem
like Sisyphean tasks. These owners have been
shouldering the burdens alone too long.
Fuzzy perspective. Burnt-out owners are so
close to their work that they lose perspective.
Prioritizing becomes a major daily challenge,
and problem-solving sometimes goes no further
than the application of business band aids that
cost money in the long run rather than increase
profits.
No more fun. Of course owning a business is
hard work, but it should also include an element
of enjoyment. The owner who drags himself or
herself through every day, with a sense of
dread--or boredom--should consider moving on to
a fresh challenge elsewhere.
Just plain tired. Simply put, many business
owners burn out from the demands placed on them
to keep their companies operating day after day,
year after year. The schedule is not for
everyone; in fact, statistics show that it's
hardly for anyone, long-term.
The important point here is for business
owners to recognize the signs and take action
before burnout begins to hinder the growth--or
sheer survival--of the business. Many of today's
independent business owners feel they've worked
hard, made their money and sense that now is a
good time to "cash-out" and move on.
The Best Price Comes from Selling While Up:
Other than burnout and its consequences, there
are other factors that can lead to the "forced
sale" of a business. Compelling personal
problems (a divorce or death in the family, poor
health), shortage of capital or outright failure
of the business, the lack of heirs to take
over--these are the traditional examples.
Instead of waiting for unfavorable conditions,
potential sellers should keep a wary eye out for
that all-important right time for putting their
business on the market. When might that time be?
The Small Business Administration (SBA), in
researching selling trends, reports that three
to five years is a long enough stretch for many
of today's business owners. One in every three
plans to sell; many of them right from the
outset. The business they've bought is not a
legacy for their children--it's a shorter-term
investment of their time as well as their money.
The ability to present a healthy operation, with
an owner in the position to "role model" its
success are major advantages in the completion
of a successful business sale. One of the surest
ways to maximize the value of a business is not
waiting too long to sell.
Back to Top
|
