Deciding to close up shop is an emotional and painful decision. You have nurtured and grown your business, spent countless hours up late trying to help it grow. And while you may have done everything you could and even though there were some ups with the downs, you know it’s time to pack it up. You can see more about how to get to this decision in our post from last month here: When to Cut and Run.
So you’ve made your choice. Staying in business isn’t right for you. Now what? Seriously, how do you sell a business? Sell a house? Get a realtor. Sell a car? Dealership, website etc. How do you sell a business? If the business has debt, does it go with it? If you took out a loan to fund the business, who carries that? If you’re selling because the business isn’t doing well, can you get enough to at least cover your losses? These are the questions you need to know the answers to if you want to have a successful sale. Maybe you’ve decided you’re just not cut out for business owning, or at least not owning this business. How do you find the answers you need and how do you trust yourself to make these choices after you’ve made enough “bad” choices that you’re selling your business.
This is complicated stuff. Honestly I can’t answer those questions for you. If you hire a realtor to sell your house doesn’t is stand to reason that you’d hire a broker to sell your business? Like a house, a business is complicated and they’re not something most people buy and sell very often. Also like a house, you can have some serious losses in the buying/selling process. If you’re not having good luck finding a broker or maybe all the ones you can find aren’t well reviewed etc there are some other options. Go to the SBDC (Small Business Development Center). Most cities with a Chamber of Commerce have an SBDC. They are generally free, even if you’re not a member, and they can certainly point you in the right direction and give you advice on where to go from there. It’s also likely that you have some colleagues or friends you can ask. If you’ve been out networking you know other business owners, likely with more experience than you. Ask them where they would start. Is there someone they trust you could talk to? I know getting the information is hard and scary but you need it to make good choices going forward.
So, ask the right questions of the right people. Don’t trust the buyers to give you all the answers even if they are more experienced than you are. They’re out for them, make sure you have someone out for you. Get your financials up to date, even if they’re depressing, talk to an expert and talk to a lawyer before any paperwork is signed. It may feel like too much money to send into a pit you’ve already sacrificed a lot to but it’s the best way to make sure that pit doesn’t grow exponentially.