21:36
Faizan
Selling an existing business can be a long and daunting process but as long as you start planning early and have clearly defined goals then it need not be. Succession Planning is the process in which you find the right strategy for you.
Good succession planning is vital to a healthy business and to allow your eventual exiting to run as smoothly as possible. Proper succession planning should help:
Protect your business legacy.
Maintain continued community service.
Increase you business value.
Insure financial security for you, your stakeholders, and your family.
Help deal with unforeseen events.
Prepare yourself for the future of your business.
These are several options when it comes to your exit strategy. Self-evaluation is required during this step of the process, no one can tell you which option is best for you.
The first option is to transfer the business to a member of your family. This is a popular option among small business owners. Family owned and run businesses are a corner-stone of the Canadian economy.
The second option is to transfer the business to a Partner, Stakeholders, Management team or Employees. This is a better option for a medium to larger size businesses as there are many different considerations to account for.
The third option is to sell to a Third Party. Selling to a Third Party may be the best option for a person who wishes to completely remove him or her self from a business.
Once you have decided what kind of exit strategy is best suited for you it is time to start the selling process.
Get help of an Expert to determine a listing price. Calculating the selling price for your business is vitally important. Listing your business too high will be detrimental to selling; many people will pass because they may feel that you are trying to rip them off. Listing too low will not only cost you the money you could have gained but may even cost you a sale. If a buyer sees that you are listing too low they may pass on the opportunity because they think there is something wrong with the business.
Good succession planning is vital to a healthy business and to allow your eventual exiting to run as smoothly as possible. Proper succession planning should help:
Protect your business legacy.
Maintain continued community service.
Increase you business value.
Insure financial security for you, your stakeholders, and your family.
Help deal with unforeseen events.
Prepare yourself for the future of your business.
These are several options when it comes to your exit strategy. Self-evaluation is required during this step of the process, no one can tell you which option is best for you.
The first option is to transfer the business to a member of your family. This is a popular option among small business owners. Family owned and run businesses are a corner-stone of the Canadian economy.
The second option is to transfer the business to a Partner, Stakeholders, Management team or Employees. This is a better option for a medium to larger size businesses as there are many different considerations to account for.
The third option is to sell to a Third Party. Selling to a Third Party may be the best option for a person who wishes to completely remove him or her self from a business.
Once you have decided what kind of exit strategy is best suited for you it is time to start the selling process.
Get help of an Expert to determine a listing price. Calculating the selling price for your business is vitally important. Listing your business too high will be detrimental to selling; many people will pass because they may feel that you are trying to rip them off. Listing too low will not only cost you the money you could have gained but may even cost you a sale. If a buyer sees that you are listing too low they may pass on the opportunity because they think there is something wrong with the business.
Posted in: business
