Starting a business is a huge part of any entrepreneur’s life.  Running the business is life for most business owners.  They pour their hearts and souls into doing everything they can to make their businesses successful.  Some succeed and some fail, but they all do everything they can to make it work.  They all live the business.

So when is it time to sell a business?  This can be a troubling and painful question for any business owner.

There are some widely different reasons for wanting to sell a business.

The company is not doing as well as intended.  It is time to cut losses and sell it.

–          It is an unfortunate reality that not all businesses are successful.

–          Can the business be turned around? Or would the owner be better off selling it and starting fresh with something else?

–          Can the business be sold for a reasonable sum despite its dire condition?

–          If the owner can get a decent amount for the business, it is probably a good idea to sell and use the money to fund other ventures.

The company is doing very well.  In fact, it is doing so well that it can be sold for a great deal of money.

–          How much money can the owner make from the sale of the business?

–          Compare this money to how much money the owner can make from running the business over a period of time.

–          Selling now and taking the money is a sure thing, but running the business further could result in more money.  However, this is risky in the new economy!

–          Owners should weigh their options carefully!

The company was always intended to be sold when the time was right.

–          But when is the right time?

–          Keep a close eye on the company’s worth and determine when the best time to sell will be.

–          Have a goal price in mind and don’t get greedy.  Waiting too long can result in disaster. Owners should weigh risk and reward!

The decision to sell a company can be the hardest decision in any business owner’s life, but it can also be one of the most beneficial.  Company owners should approach the idea of selling with a clear and level head, and perhaps seek professional advice about when to sell their companies.

Preparing to sell a business is a lot like preparing to sell a home.  The seller should work to highlight the good things about the property and hide the bad things as best they can.  They should ask for a little more than they want and be prepared to settle for a little less.  Most importantly, they should take stock of what they have working to their advantage and what they have working against them, and it never hurts to have professional help.

The new economy is hard on everyone, and business owners are no different.  In a time where everyone wants to sell, it can be difficult to make a business stand out and command a fair price.

So while business owners should be prepared to take a little less than they want for their businesses, they should also be wary of when they are being taken advantage of.  Selling a business for much less than it is worth can be devastating to the financial situation of the seller.

It is important to know the worth of the business, and to consistently demonstrate that worth to potential buyers.  Having professional assistance in this is especially helpful, as a trained professional can assure sellers that they have a business worth purchasing for a certain price.  From then on, it is easy to determine which buyers are trying to take advantage of a bad economy and desperate seller.

Sellers must work hard to make sure they are not being taken advantage of.  Sellers must also work to assure potential buyers that they are not trying to take advantage of those buyers.  The best way to do this is to actively demonstrate the best aspects of the business.

A business should always have its best foot forward, but when it is on the market this is especially important.  Potential buyers need to see the best a business has to offer.  Sellers should highlight the advantages of their businesses’ location, focus on unique ideas and techniques, and really demonstrate what makes their business worth the price of purchase.

The new economy makes it difficult to sell a business, but not impossible.  The solid principles behind running a business that have always applied still apply now.  If a business is well run and well presented, sellers should have little problem finding a buyer who will give them a good price.

Many companies don’t do well.  Many companies fail, especially small start ups.  It is an unfortunate reality of today’s economy.  Companies that do manage to survive those first few trying years are by no means out of the woods, either.

Just because a start up manages to hack its way into some amount of success doesn’t mean that it won’t take skill to continue running it.  In fact, it means paying closer attention to the business as it grows, and keeping an eye on the value of the company.

Business owners cannot afford to delude themselves when it comes to the value of their companies.  That’s a fast way to lose a lot of money.  Companies that value themselves too high are going to have a very difficult time finding investors.  An overvalued company won’t be able find a buyer if the owner should ever decide to sell.

On the other side of things, an undervalued company can lose its owner just as much money.  Business owners that undervalue their companies give too much away for too little, and let someone else make money that could have been theirs.

It is important for the owner of a company to make an honest evaluation of what that company is worth.  What is the customer base? Is that base growing or shrinking?  What sets a company apart from its competitors, and how much is that worth.

There are dozens of questions that company owners should be asking when trying to evaluate the worth of their companies.  It is crucially important for anyone looking to sell a company to know what that company is worth.  What’s more, it is very important that the evaluation of a company’s worth be objective and honest.

It can be difficult for someone who owns a company to evaluate the worth of that company.  After all, they worked to build it, and they want to be proud of it.  It is a good idea to seek professional assistance when evaluating the worth of a company.

The outside opinion of a trained professional can be a valuable tool for company owners looking to sell their companies.  A reputable professional will give an honest and objective evaluation of the company’s worth.

This evaluation can be catalogued for later reference, or used immediately when looking for new investors or buyers for an existing company.

When a person is buying a product, what are the things on their mind?  They want to get value for their dollar, so they don’t want to pay too much.  But they also want to get a quality product, and might be willing to spend a little more to get it.  However, sometimes, the extra value just isn’t worth the extra price, and a product with fewer features might be chosen because it costs significantly less.

Cost is an important factor, but it isn’t the only one, and it gets balanced against other factors as the person weighs their decision.

The same thing can be said about the value of a business.  The financial angle is only one of many.  While it is probably the most important factor when determining the value of any business, other things do come into play.

A company with a strong bottom line and nothing else is going to be difficult to sell.  Selling a company isn’t about having value, it’s about demonstrating that value.  Company owners should strive to show potential buyers that their company is well establish and has potential to keep growing.

Reputation is a very important factor in the value of a company. A company that makes a lot of money through unethical practices is not one that is ready to sell.  Mainstream buyers aren’t interested in getting down and dirty to save a few bucks.  They want to buy a clean business with a good reputation.

A company’s appearance also contributes to its value.  Companies with physical locations should keep clean offices and warehouses.  Employees should be well dressed and hygienic.  Online companies should have good looking and well designed web pages that are user friendly and easy to read and interface with.

Remember that potential buyers are looking for something they can be proud of.  Their primary focus will be how much money the company can make, but supporting factors will make them much more likely to see the true value of a company than any financial report will by itself.

This also gives company owners with weaker companies a chance to really put in the effort and show that all the tools are present for a money making company, even if the numbers don’t show it just yet.

Remember that price isn’t everything, and a company is much more than the sum of its financial records.