Sellers often call our office and have an expectation that selling their business can happen the moment they have decided to sell. Unfortunately, selling your company is not a simple or fast process. There are many considerations to make in order to take this big step, and you must ensure the results are beneficial both personally and financially. Especially in the competitive business climate around Santa Clara County & San Jose, CA, business owners must ensure they make the proper preparations to sell their business successfully. At Sunbelt Business Brokers, Greater Bay Area, we are dedicated to confidently helping you achieve the best outcome when you sell your business in the So. Alameda County, CA area and beyond.
Is it the Right Time to Sell?
If emotional reasons are at the forefront of your decision to sell your business, you may want to slow down and reconsider. Talking to an agent can be a great sanity check for you and a way to know where you truly stand in terms of readiness to sell. From a practical standpoint, the best time to sell is when your business can boast consecutive years of increasing sales and profits; our team can help you obtain this attractive selling point.
Are You Financially Able to Sell Now?
It is advisable to develop a financial plan before you decide to sell your business. You need to know if you will need to keep working after you sell your business. If your plan was to retire after selling your business, it is important to ensure that is actually financially feasible and safe to do so especially if needing to work means continuing in the same trade or industry as your sold business. A non-compete clause in a purchase agreement may mean that you can not return to work in the same field due to the risk of the business’ trade secrets becoming compromised.
Is Your Business Ready to Sell?
Having your business ready to sell involves having a team in place that understands how to run your business without your involvement in day-to-day operations. If your business is highly dependent upon, your knowledge, your skills, and your experience to continue having success, then it may be more difficult to sell your business. Our advisors can help you to transition your personal production and responsibilities to members of your staff in order to prepare for a self-sufficient and fully educated operational team. New business owners rely heavily on the employees at first to maintain the historical trend of profitability for the business. If removing yourself translates to removing a vital element to the procurement of cash-flow, the factor of your absence makes the acquisition a much riskier and far less attractive prospect.
It can take a number of months, or even up-to-a-year, to go through the process of deciding to sell and then selling your business. As you embark down this road, make sure you have answers to the relevant questions mentioned above. In doing so, you may be able to place yourself in a better position to sell.
If you are preparing to sell your business in Santa Clara County, San Jose, CA, or So. Alameda County CA, call us today at 408.436.1900 or complete our contact form.