While some business owners may think that the hardest part is over once they decide to sell their business, there is still much work to be done. Ensuring the continued operation of the business without the owner’s presence is crucial. Working with an experienced broker can greatly impact the transition to new leadership.
Thinking of Stepping Away?
Many business owners believe that nobody knows their company as well as they do. However, when the time comes to step away, it’s important to ask yourself these questions:
- Do you attribute the ongoing growth of your company primarily to yourself?
- Have you built a management team that understands your company inside and out?
- Are the processes that drive your business documented, or are they solely stored in your mind?
- Have you maintained organized books and financial records?
The answers to these questions will determine the difficulty of reducing the organization’s dependence on you. Seeking assistance from a trusted business advisor, like The Tampa Business Broker, can help you relinquish control and ensure your business is appealing to potential buyers, resulting in a financially beneficial exit.
Reducing Dependence on You
If you’re concerned about being too involved in the day-to-day operations of your business, there are steps you can take to gradually distance yourself before selling:
- Build a strong management team: Ensure your team is well-versed in all aspects of the business, from bookkeeping to employee management.
- Boost the confidence and capability of your team: Communicate your trust in their abilities and empower them to take on more responsibilities.
- Spend less time in the office: Once a strong team is established, gradually step back from day-to-day activities to allow other leaders to assess their effectiveness in your absence.
Proving the Business Works Without You
To secure the best possible price and a successful sale, it’s crucial to demonstrate to potential buyers that the company can function autonomously. Similar to sending a child off to college, it may be difficult to let go, but if you have fulfilled your responsibilities, the company will have the necessary resources to thrive on its own. Here are some actions to consider:
- Delegate responsibilities to trusted employees.
- Develop a succession plan.
- Detail your company’s processes and procedures.
- Implement any necessary new technology.
In today’s digital world, technology plays a crucial role. If your business is still analog, it’s important to transition to digital before selling. Start by modernizing your POS system, digitizing processes, and moving operations online or to a cloud-based platform.
If you’re considering selling, turn to The Tampa Business Broker. Dave DeCamella can guide you through the entire process and provide a complimentary business valuation. Schedule a consultation today.