You’ve worked hard to build a business and now you’re ready to sell. But the potential buyer wants you to stay on. What should you do? Today on the show we’re talking about five things you should consider in any buyer plan.
What do you want?
One of the reasons a potential buyer would want you to stay on is to ensure that the business hits certain revenue targets. That can be very stressful to achieve. It may mean that you will be able to ask a much higher price for the business. But is it worth the stress. Only you can decide.
Do you need the extra cash?
As mentioned above your staying on to ensure high revenue means you can charge a higher price for the business. But do you need that extra money?
How involved will you be?
Any buyer plan that included you staying on for a period of time will detail your role. How much time you are expected to invest in the business must be clearly laid out.
How much control will you lose?
Even if you stay on you are still going to lose a lot of your control of the business. That isn’t going to be easy to deal with. Especially if you don’t agree with some of the decisions of the new owner. Be sure you’ve thought this one through before you sell!
What else could you be doing?
That extra cash may be nice but it means your time is going to be invested in someone else’s business. You could be on a beach somewhere. Make sure this is something you really want to commit too.
#smallbusiness #sales #future #planning #buyerplan #retirement #sellingyourbusiness
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.