Twenty-five Other Things to Consider When Selling Your Business

As promised earlier this month, here are the other 25 things to consider when getting ready to sell your business.

The point of this 50 item “to-do” list is (1) there is much to be done and (2) its never too early (or too late) to start. Your ultimate goal is to build an efficient business that can successfully operate and provide significant cash flow even if you (the owner) aren’t at the control panel. When you have a business that can operate without you, you have created significant value for you and you have the time to enjoy what you have built.

Take a look at the following points and those listed above. Ask yourself what you are doing about them? When will you develop a plan that guides you to building a successful business? And when will you take action?

1. Hire competent advisors and understand their roles
2. Screen potential buyers
3. Differentiate your business by creating a niche
4. Make sure partners / decision makers are on board with the decisions
5. Plan for training and transition
6. Understand the letter of intent is a starting point for negotiations
7. Understand that not all lenders are the same
8. Keep running the business as normal
9. Be flexible on business meetings and showings
10. Learn how to confidentially market the business
11. Diversify your customer base and products
12. Create a list of growth opportunities that have or have not been pursued
13. List strengths and weaknesses
14. Consider outsourcing some services
15. Create database of past and current customers
16. Review / upgrade software and technology
17. Report all sales
18. Consider a product display or showroom
19. Systematize processes
20. Prepare for the unexpected in selling the business
21. Consider lease vs. buy for equipment
22. Total cost analysis of products / services
23. Consider selling the business separate from the real estate
24. Calculate inventory carrying cost
25. Think like the buyer

We are ready now to work with you. As certified business coaches Dennis and I would be happy to help you build your plan for selling your business. More importantly we can discuss creating value in your business (before its sale) by using the above considerations.

We call it: “Building a commercial profitable enterprise that works without you.”

A Lesson from the US Open

This past weekend I found myself mesmerized by the US Open Golf Championship. Golf is one of those passions I have -- I love playing the game and really enjoy attending PGA Tournament events. In fact, one of my life goals is to attend the Masters Tournament at Augusta -- a goal I have every intention of achieving!

But, this last weekend millions of people were witness to a true exhibition of sporting greatness. Who else to deliver such an amazing performance than Tiger Woods. I have watched Tiger play in many tournaments and have followed him around the course at various tournaments. His US Open performance this past week was one for the record books.

What made this performance so special? Tiger had knee surgery on April 15 of this year. Two months later he is on the course competing for his 14th major championship. Early in the tournament it became apparent Tiger's knee was bothering him. The tournament runs for four days and with each day the knee caused more trouble for him. He fought through it and continued playing and giving it his all. Not only did he continue to play but he kept himself in contention.

The course at Torrey Pines, where the tournament was played, presented a challenge for all the golfers. The golfing was excellent and the lead changed hands many times. But, Tiger did what a champion does -- he played with determination and a passion to win. He refused to talk to the media about the severity of his knee pain but instead wanted to focus on the competition. He refused to make excuses and took responsibility for every shot he made - the good ones as well as the bad ones - and didn't blame it on his health. Tiger made the shots when he needed to and won the championship after an 18-hole playoff and even needed a 19th hole to win the trophy.

Tiger's performance was amazing and made even more so by the fact that he beat the best golfers in the world while still recovering from knee surgery. During the tournament Tiger was interviewed by a reporter who ask him about a particularly great shot he made on Saturday. It was his second shot into the 18th green and it set him up to eagle the hole (2-shots below par.) He made the eagle putt and that shot put him in the lead for the first time.

When the reporter ask him about the shot Tiger said that it was a shot he had been rehearsing with his coach prior to the round. He knew that he might need to use that shot -- a cut shot over the water -- on that particular hole. So, he "rehearsed" it. I found that to be a fascinating way to look at his preparation.

We can learn a lot from Tiger that works well for us in our business and life as well. We need to bring our passion, persistence, perseverance and desire to win with us to work every day. There can be no excuses for poor performance or "missed shots." Stay focused on the job at hand and analyze our strengths as well as our weaknesses to always get better. It is also important to rehearse for the work we need to do and what we need to be prepared for in our business. The rehearsal may be the most important part of all. We can't assume we can succeed at everything we try without rehearsing it. Even if it is something we may have done before, the preparation is critical.

Take a lesson from Tiger, prepare to win everyday and don't let anything get in your way. No excuses! Just a sheer determination and a will to win. That is the sure sign of leadership and success. Make today a great day -- stay focused on your goals and dreams and don't let the missed shots stop you from achieving all the success you desire.

Recession? What Recession?

The other day I attended a business networking function with about 80 other business owners and was struck by how negative the majority of these business people were about the current economic situation. This is a group that is generally very positive, but that day the weight of their concerns started coming out.

Part of the agenda for the meeting was to discuss what we were challenged with in our business right now and brainstorm ideas about what to do about it. We did this in small groups and then shared our thoughts with the larger group. The range of issues was huge. Everything from government regulation and control to the cost of energy and the increasing cost of goods sold through increases being passed to them by suppliers. There were also concerns about the lack of a qualified workforce and the inability to attract and retain good employees. It would be fair to say that most of the people in the room are worried right now.

The power of what I heard that day has stuck with me and prompts me to write this post today. The title of this post -- Recession? What Recession? -- is all about asking you to think about what your current beliefs are. The reality is that we are having some difficulty in our economy right now. I don't think anyone would argue with that. I have felt it in my business and I am sure you are feeling it in yours.

The question is -- what do you believe and what are you doing to find a new solution? You must eliminate from your vocabulary the negative words that bring you down and create barriers to your success. Words like; recession, depression, terrible, out of control, etc. These words will drain your energy and cause you to focus on the negative things around you. Your mind will focus on whatever you spend time thinking about. Think about all the negative things going on in your business or the economy and you will find more of them. This makes it difficult to lift yourself above it and find answers.

However, if you focus on the positive things going on in your business and create positive beliefs, you will be much more likely to uncover ways to deal with your issues. It is about re-solutioning the problem. The old solutions may not work right now. It is up to you to look for new solutions, temporary adjustments, and creative ideas to organize your business most effectively and to promote it. Your attitude will be the biggest driver about how you handle the current realities and how well you position your business for when the current reality changes.

Your job is to be fearless, courageous, undaunted and an eternal optimist. To look for new opportunities where others see nothing but trouble. To create lemonade from the lemons others are serving up. Market like you have never marketed before. Look for creative solutions to those things outside of your control. Train your team and educate yourself in the newest and best ways to market, sell, organize and systematize your business. You will be amazed at how much your business can grow and prosper during times like this with the right focus. When the economy improves you will be very well positioned to take your business to the next level very quickly.

Don't allow others to dictate your reality and your beliefs. We all have a wonderful God given gift ... the gift of choice. You can choose to let the current situation control you or you can choose to create your own results and outcomes. The choice is yours ... what will you choose?

If you would like to learn more about how to take control of your beliefs and create the business and life you want, then pick up a copy of my new book, Achieving Unlimited Success. And give Ralph or me a call if you would like to talk about how an ActionCOACH business coach will lead you through these current challenges. Also, register here to receive my monthly Achieving Unlimited Success monthly email newsletter and a FREE copy of the report "5-Step Success Formula."

To Your Success ...

Twenty-Five Things to Consider When Selling Your Business

My partner, Dennis Kelley and I recently invited a group of clients and strategic alliances to meet with us and Business Broker, Kipp Krukowski from Sunbelt Business Brokers to explore the really important things to consider before selling your business.

In addition to leading the dialogue on what is the value of your business, Kipp told the audience that the time to ready the business for sale is not at the last minute. The right time is perhaps ten years and no less than three years in advance of the proposed sale date.

The fact is it takes considerable planning to sell anything. In particular it takes time, planning and significant effort to sell a business. Kipp has developed a list of 50 things to consider when planning to sell your business – here are the first 25:

1. Understand different types of buyers
2. Understand how to calculate Seller's Discretionary Earnings
3. Understand different ways to value a business
4. Understand that different buyers pay different prices
5. Understand deal structure - asset vs. stock
6. Understand seller financing pros & cons and how to structure
7. Value stream map processes and materials
8. Clean facility
9. Improve appearance on the internet
10. Solidify workforce
11. Cross train employees
12. Create employee manuals
13. Understand the sales process and timeline
14. Emotionally detach from the business
15. Remove non-operating assets
16. Formalize contracts with customers
17. Formalize contracts with suppliers
18. Clean up legal issues
19. Understand the "true" value of the assets
20. Repair / maintain equipment
21. Sell excess inventory/write-off obsolete inventory
22. Collect aging accounts receivable and make them current
23. Remove unnecessary family expenses
24. Understand the "net" after the sale proceeds
25. Create a control plan for quality control

I’ll share the other 25 things sometime in the future. Meanwhile, Dennis and I would be happy to talk with you regarding the planning for selling your business. More importantly we can discuss creating value in your business (before its sale) by using the above considerations.

We call it : “Building a commercial profitable enterprise that works without you.”