Whatever your reasons for selling your business, there are challenges associated with it. You can meet these challenges if you know what they will be ahead of time and prepare accordingly. Here are some of the problems you are likely to encounter as you sell your business and how you can meet them head on, as a business lawyer, such as from the Law Offices of Arcadier, Biggie & Wood, can explain.
1. Difficulty Staying Motivated
Selling a business is a process. The only way it can succeed is with total commitment. You can sometimes get discouraged, especially if the process takes longer than you expected. Staying focused on your goals can help you maintain your motivation even when the process gets difficult. To that end, you may want to remove yourself from the operation of the business on a day-to-day basis so you can direct most of your attention toward the sale.
2. Reassuring Employees
Concentrating on the sale means making sure your employees are equipped to handle the operation of the business without you. This involves extensive training, but it also means making an effort to prepare them for the sale beforehand. Early in the process, you should let them know of your intention to sell. At every step, keep them informed of what is going on. Do not give false promises about what is going to happen after the sale. Rather, take their concerns seriously and answer their questions honestly.
Your employees bring value to the business by doing their jobs efficiently. You will need their support at various points in the process for the sale to be successful. Hopefully, the new owner will appreciate the value that they bring to the business and keep them on. However, do not go too far trying to obtain employees’ support for your plan to sell the business. It is generally not a good idea to include aspects of employees’ jobs in the sale contract.
3. Negotiating a Price
It is only natural that potential buyers may make offers that are lower than what you ask. One of your first steps in selling the business should be to have a professional appraisal so that you know exactly what your business is worth. Arming yourself with this knowledge helps you to be confident in your negotiating position and commit firmly to your asking price. It may help to have valuation documents handy while negotiating so that you can concretely demonstrate to potential buyers why your business is worth what you are asking.
Even when you prepare to meet the challenges of selling your business, you may still need help with the process. Contact a law office to find out how an attorney can assist you with the transaction.