Question: What steps do I need to take to sell my business?
If you’re a business owner in Canada looking to sell, your first step is to figure out your objectives moving forward. Ask yourself the following questions and write down your answers. This will help you start to formulate an exit strategy:
- Who do I want to sell to?
- When do I want to leave?
- How much do I want from my business?
Throughout the process, it’s important to see the big picture. Your second step is to make it matter. Look outside your business, at your personal life plan.
Who are you without your business? It’s important to know yourself. Ensure that you have a plan for what you will do after you sell your business. Imagine your entire life like a big pie. What are you doing outside of the slice of pie that is your work life to ensure you will lead a meaningful, and satisfying life.
When it comes to your personal life, you should make it matter. When it comes to your business, you should make it better! This is the third step.
Explore ways to increase the value and sustainability of your business. This will be extremely important when you go to sell, as it will help you get the price that you want. You’ll need to de-risk your business, increase transition options and improve transferability before you start looking for a buyer.
If you’re struggling to find ways to make it better, find advisors who can help you instead. Here are examples of the types of experts you should seek out:
- Chartered Professional Accountants (CPA)
- Business Valuators
- Business Consultants
- Wealth Planners
Once you’ve finished making it better, you’ll be in a good position to start looking for a seller who’ll eventually take over your business. Learn how to make it happen in Part 2 of this blog!