When you finally make the decision to sell your business, it is paramount that prospective buyers understand why you have made that decision. Having a valid reason to sell your business can stand out when the time comes and can make your business more appealing to prospective buyers. If you would like to sell your business and retire, this is the most natural and valid reason. Let’s face it, at some point, everyone will have to retire no matter how well a business is thriving. In fact, buying a successful business from a proprietor who is retiring is just the kind of situation that most buyers will like and sing a tune to.
Retiring from a job, probably the 9 to 5 kind of job cannot be compared to owning a business and then looking forward to retirement. Retiring from owning a business can heavily change the dynamics of the business due to your engagement with the business. It is likely that you have a lot of friends ranging from employees, vendors, customers, and clients from other businesses. This means that the business could suffer from your departure and operations would be negatively impacted. It is vital that this does not happen and the way go about it is preparing in advance. Your transition should be cautioned from negative impacts by creating a situation that leaves everyone settled and happy once you are not playing your role after the transition.
Sell your Business and Retire – Preparation
Preparing for this transition involves a number of strategies. The first strategy is handing over your mandates to a suitable candidate before diving into the selling process. This candidate should be well equipped to take over the roles you played in the business. Familiarize them with your friends, employees, vendors, customers, and clients from other businesses and let them handle the day-to-day operations on their own as you watch how well they fit into the position. A capable candidate should be in a position to handle the business operations during the transition period and after you are not in the picture. Prospective buyers will be confident with the realization that a capable candidate is in control and that after the sale nothing will go out of hand.
The second strategy is the automation and simplification of your businesses processes. Being able to outline steps you’ve taken to automate various processes for your business will help attract more buyers. No one knows the “how” of your business more than you, which makes you the best source to simplify the processes of your business. Automating processes can range from, automation of vendor deliveries, automation of payrolls, inventory management, and customer handling. Automated processes will put you out of the way and you can watch how the business fairs if you were not there at all.
I can bet that you don’t want to retire and be miserable, this said, you should set up a retirement account to draw upon if you have not done that yet. Statistics show that, on average, 50% of business owners do not have a retirement account set before they think about retirement. It is important that you do it as soon as possible, avoid regretting a situation that can be averted.
Finally, consult with a business intermediary or a business broker. They are the best way to handle the process of allowing you to sell your business and retire. Business brokers have the expertise in finding prospective buyers, valuing your business and ensuring you get the right price, at the right time in a simplified transition that will not overburden your life.
Synergy Business Brokers can help make the process easier for you. After all, we’ve helped hundreds of business owners sell their business and retire over 16 years. Some of our clients provide just a short transition period and others like to stay on part-time for a number of years to keep themselves involved in the business but not work full time. We can find the right buyer to help make your transition into retirement a successful one.
ABOUT SYNERGY BUSINESS BROKERS
Synergy Business Brokers sell businesses with annual revenues of $600,000 to $40 Million. Synergy Business Brokers has helped sell businesses and execute mergers and acquisitions in technology, distribution, construction, manufacturing, healthcare, services, engineering, education, and transportation.
We have Senior Brokers in CT, NJ, MA, and NY and sell businesses throughout the US.