Do Business Well

There are many situations that may cause you to seriously consider selling out. Among these are the obvious such as age, ill health, a decision to move your family to a new area, burnout, family pressure, or just the desire to move on to something new.

When selling becomes a serious option, you need at least nine months to find a buyer and consummate the sale. For even better results, plan to take two years. Here are the steps you should follow to obtain the highest price for your enterprise.

1. Change the way you do your bookkeeping one to two years before the sale. There are many different ways to prepare your income and financial statements that are legal and ethical. When selling the business is not a consideration, your priorities are probably determined by taxes or banks. You’re either trying to limit your profits to reduce tax exposure or maximize profits to prove creditworthiness.

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The net worth of most small business owners, is usually divided between the equity in their home and the net worth of their company. After selling a valuable business, it’s usually best to assemble a diversified portfolio. You may want to invest in an assortment of blue-chip stocks, tax-free municipal bonds, and treasury bills. These assets plus your house should provide excellent security into old age, and for your children as well.

But what is security if you no longer have any purpose in life? Common to most entrepreneurs is a love of what they do. Below, we’ll explore a few options that will allow you to have it both ways. Continue Reading »

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