Do you have designs on selling your startup sooner than later?
In the event you said yes, it is important to have everything in order. That is to lessen the chances of something bad taking place before a sale can go through.
With that in mind, what steps will you take when looking to sell?
Don’t Come Out on the Short End Financially
In moving towards selling your startup, here are three keys you want to focus in on:
- Knowing the value of your startup – If you were put on the spot and asked, would you know the true value of your company? Odds are some owners would say no. That is why you want to sit down and go over a variety of things as they impact your company’s finances. From what your industry looks like now to valuations multiples involving your company and more, do your research. It is key to sense what your startup is worth now and could be worth down the road. If the thought is your startup is going to continue headed in the right direction, now may not be the time to sell. You do not want to sell too early and look back with regret. The same can be said for hanging on to it too long and getting less value. Work with pros to analyze every aspect of your startup so you have a good idea of what you are dealing with.
- Are any other people involved in a potential sale? – In the event you are your company’s single employee, you do not have to worry about a sale and the impact on workers. That said you do have more to think about when you have people on your payroll. How will a potential sale affect their lives moving ahead? Will your employees have ease in finding work elsewhere? If you open another business or have one now, would you offer work there to your current team? Might you think about putting language in a sales contract? This would be that the new owner offer work to your current employees upon taking ownership? Those are but a few of the questions you want to run through your head before selling. Given your employees have put in the time and effort for you, it is good you do the same for them when looking to sell.
- What might be next in your career? – As you look to sell your startup, do you have any thoughts on what the near future may hold for you? Unless retirement is in the works for you, it is wise to have a plan for work mapped out. Could you be looking to own another business or already do? Is there a possibility you would go to work in the corporate world for someone else? Doing so can take the pressure off you of having to make key decisions all the time in running a business. Have a sense of what you want to do next and how best to go about doing it.
When looking to sell your startup, the hope is everything falls into place neatly for you.
