It was a very good article which captures what we in the business brokering industry have been preaching to business owners all along for the last 5 years now. Unfortunately it surprises me as to how little business owners still spend so little time in planning their exit from their business. I find business owners spend more time planning their next vacation compared to planning their exit from their business. With the number of businesses available for sale increasing every year, business owners really need to plan their exit and more importantly differentiate their business from the other in order to make their business more attractive to a buyer. We find buyers today are taking more time to buy a business today compared to 10 years ago. According to statistics compiled by business brokerage industry leaders, it takes on average 9 months to sell a business today compared to 7 months in the past. This is mostly due to two reasons: 1) the availability of more information over the internet allows buyers to do more research and ponder on their decision plus compare other businesses in the market all from a click of a button; 2) the ever increasing number of businesses in the market place, forcing prospective buyers to say, "let's wait and see what comes up next week".
As such it is important for a business owner who is planning to exit from their business to plan early. Plan on how you are going to exit from the business; plan on when you are going to exit from the business; plan on how much you need to sell your business for in order to retire and enjoy the second season of your life...
Those that take steps to plan and implement some strategies will come out ahead and possibly also sell more a higher value. Plan to increase revenue today, reduce expenses, increase profits, do a valuation to determine what is the value of your business to that you know what you need to do to increase the value of your business.
If you are interested in reading that article, click here for the link: Tsunami Warning - Profit Magazine article