A transition plan that allows the business owner to sell the business for the highest price possible in the shortest amount of time to the most qualified buyer is generally the top of the wish list for most business owners. Because the business owner lives and breathes their business they become emotionally attached to their customers, employees, suppliers and other business partners as the business is a reflection of who they are.Deciding to sell the business and move to a new role is much more complicated than most business owners realize. Sure, you can start by putting the business on the market and see what happens, but that’s not a good strategy. If customers, suppliers, competitors or others find out, it can severely damage the business.
So where does the business owner start? It’s my suggestion that one of the starting places is with a transition plan. A transition plan, at its simplest level, is an attempt to define the needs of the business owner and then systematically move to their desired outcome. And I am not just talking about the actual process of selling the business. I would suggest the owner go back to some more basic level and understand why they are selling, what they hope to achieve and probably most important of all, what are they planning on moving to and are they excited about it. If they are not excited about it, chances are they will do all the work to get the business ready for sale, advertise and market the business, qualify the buyers, negotiate a deal, do all the due diligence, prepare to close escrow and then change their mind because they would prefer to continue owning and operating the business than playing endless rounds of golf or become a full-time babysitter looking after the grand kids etc. Read More….