Retirement comes to us all. If you want to embrace it fully, you might want to consider selling your business. This will give you the freedom to follow other dreams outside of San Jose CA. The time to do this is not a month or even a year before you list the business. You need to look at an exit strategy at least five years in advance. Ten would be better but sometimes this is not feasible.
Planning In Advance
Planning is the key to making sure you and your business broker have covered all contingencies. The longer the time line, the better a chance you have of making sure everything about your business is in order. You need to consider a variety of interrelated qualities that make your business tick efficiently and will make it a desirable property for some individual or company. By taking into account all aspects of your business in advance of the sale, you can do your utmost to ensure the evaluation process truly reflects the company’s worth.
Components of the Exit Strategy
When it comes to preparing the right exit strategy, you need to look to the future. You have to prepare now for what someone else will consider advantageous. Among the many things you have to consider, some are common sense. Business differentiation is one matter. You need to make sure your business is not a carbon copy of others in your San Jose CA region. Make sure it stands out enough to attract buyers.
At the same time, you need to keep an accurate listing of your assets. Potential buyers always focus on the assets. You need to make sure you have an up-to-date list of the worth of such things as:
* Equipment
* Products
* Customer Base
* Inventory
* Real Estate
* Financial or Contractual Obligations
* Personnel and Staff
You need to be ready to explain and discuss these basic components when it comes time for selling your business.
The “Intangibles”
Many small to mid-companies in places such as San Jose CA have intangible assets. Among them, you will find personal goodwill. This refers to the kind of relationship, trust and even friendship you have built up over the years. When you no longer run your company or shop, the goodwill can easily vanish. It is up to you to try to make sure the transition is successful. One simple way is to transfer the relationship and all it entails to your employees. This will help establish continuity for the new owner.
Plans for Selling your Business
In San Jose CA, if you want to sell your business, you have to think in advance and formulate an exit plan. Five years before you retire, compile a list of both tangible and intangible assets for your company. Keep this record up-to-date. When the time comes for selling your business, you will be prepared to work with a business broker to obtain the best price possible.
