Whether you have had your startup for years or only a short time, how it is doing can impact on how long you want to keep it.
With that in mind, might you be at a point now where moving on from your small business is in your best interests?
In the event you said yes, what steps must be taken to better ensure the sale comes off without any major hitches?
So, is it time to learn how to prepare your startup for acquisition?
Don’t Delay a Sale with Gaffes
One of the last things you want to do is delay a potential sale with one or more notable gaffes.
First, make sure you have your startup ready to go on the market. If you do not have all your ducks in a row, it could mean you miss out on a prospective sale.
This focus should start with your paperwork.
Having all your paperwork in order is critical to getting the attention of buyers.
So, go through your financial documents to be sure everything looks good to go.
It is important not only to know your assets but of course any notable liabilities. Having major debt to your company’s name can be a big red flag to many prospects looking to buy a startup.
Another key area of focus needs to be on what will happen to your employees if a sale goes through.
Unless you are the only employee, be sure that the folks who’ve worked so hard for you have some direction on what is next.
Among the possibilities would be:
· Moving on to something – Your employees may have to move on when you are no longer running the company. This oftentimes means they look for other work.
· Staying with a new owner – Another thought could be your employees will get a chance to stay with the company. That is to work for its new owner. Some may opt for this given they like the company or the familiarity with it. Others may decide it is time to go in a new direction.
· Going along with you – Finally, another option could be some or most employees will head off with you. That would be if you are going to begin another small business.
By being as upfront as possible with your workers, you can more times than not avoid burning any bridges.
Would You Buy Another Startup?
When the time has come for you to put your startup on the market, any chance you will look to buy another?
If you said yes, it is key that you have learned something from your most recent experience as an owner.
Knowing things such as what went well, what did not, what you might do different and so on are all things to address. By having answers for those things, odds are you can have an even better experience the next time around.
If you want to buy another startup, use the same approach others hopefully use when looking at your sale.
That is to know as much as possible about a company. This would be especially any financial red flags or those involving your brand reputation.
If you are moving on, make it your business to have the next chapter in your professional life ready to go.