The Unprepared Business Owner’s Guide to Selling Their Company FAQ

Problem: “Records? Oh, you mean those papers in the drawer labeled ‘Important Stuff’?”
Solution: Step 1: Find your ‘Important Stuff’ drawer. Step 2: Get a professional to turn your shoebox full of receipts into a neat financial report. Buyers want to see organized books, not just proof of your caffeine addiction.

Problem: “I’m like the sun. Without me, everything falls apart.”
Solution: Start transferring your knowledge to others and delegate tasks. Train your team to keep things running smoothly without you. Buyers prefer businesses that don’t come with a ‘one-person-does-everything’ manual.

Problem: “Strategic what now?”
Solution: Before listing, take a few months (or years) to plan ahead. Create a roadmap that shows potential buyers where your business is headed. Otherwise, they might think the only plan was to ‘wing it.’

Problem: “Oh, you mean my ‘work lunch’ at the beach?”
Solution: Yes, it’s an issue. Buyers will want to see a clear picture of the business’s finances. Clean up your books, separate personal from business expenses, and make sure your financial records aren’t a giant puzzle.

Problem: “Marketing is just word of mouth, right? Like when my aunt tells her book club?”
Solution: Create a basic marketing and sales plan to show how your business can grow. Potential buyers will want to see that there’s more to your customer base than just your aunt and her friends.

Problem: “My business is priceless… literally!”
Solution: Get a professional valuation to determine a realistic price. Overpricing will scare buyers away faster than a Monday morning meeting.

Problem: “Surprise! We’re getting sold!”
Solution: Yes, it’s very important. Prepare your team for the possibility of new ownership. Not only does this create a smoother transition, but it also reassures buyers that your employees won’t flee when you do.

Problem: “Handshake deals are good enough, right?”
Solution: While a firm handshake might have worked back in the day, buyers will want to see formal contracts. Lock down agreements to show stability and predictability, not just a hope that your suppliers are still friends with you.

Problem: “It seemed like a good idea over coffee this morning…”
Solution: Take some time to think about your reasons for selling. Without clarity on why you want out, buyers might wonder if there’s a hidden issue. Plus, knowing your ‘why’ helps you determine what you want to achieve from the sale.

Problem: “I want to have my cake and eat it too.”
Solution: Consider options like partial sales, partnerships, or earn-outs where you still maintain some control or involvement. But if you can’t stomach the thought of leaving, it might be best to delay the sale until you’re truly ready.

Problem: “Wait, I’m not crying; it’s just… dust in my eyes.”
Solution: Selling a business can be emotional. Prepare yourself for the reality that your business baby will be in someone else’s hands. Seek advice from mentors or even a therapist if you need to process those feelings. It’s okay to be sentimental, but make sure your decisions are practical too. Reach out to Purple Turtle Investments and ask for a complimentary copy of RiC Spear’s book “5 Stages of Grief Selling your BABY (business”