As a business owner, you know that timing is everything. The faster you can get to a water damaged home or business, the easier your job will be and the better off your customer’s wallet will fair.
Selling a business, however, can seem like a never ending up hill question. When is the right time? And how do you even tell?
The short answer is the best time to sell your restoration is when you want to. Are you burned out? Tired? Want more time with friends and family? It might be the right time. For more info about the importance of work/life balance, check out this blog post we posted.
Work/life balance things aside, you’re probably most concerned about the bottom line; when can you expect the best return for your dollar.
When you’re prepared
You could be saying to yourself, “I want out, let’s sell it now!” Don’t blame you. Building and running a business can be hard. However, you’ll get a much better return on your investment if you do some prep work before putting your business up for sale. There are a whole host of things you can do to prepare your business for sale. First, make sure your books are clean and straight. Any buyer will be looking carefully through your financial to determine if your business is a fit for them.
Next, take a critical look at what you’ve got. Equipment, land, all of it. Also, how many employees do you have? What do your expenses look like? You really need to take a very hard look at every facet of your business.
Finally, ask yourself if you’re ready to sell. After all, you’ve built your business and you’re going to be giving it up to someone else. It’s an important question to ask yourself.
When things are on the way up
Take a look around you. Is the economy doing generally well? The people around you seem positive? How about employment - nearly full? A lagging economy or high unemployment generally sends buyers to safety, not looking to purchase new businesses. You should have a pretty good understanding of the landscape from your own business. Obviously, disasters happen regardless of the economy and restoration companies are always needed - but if business seems slower for a while, it may not be the best time to sell.
When you’ve got a good second
Consider that after you leave the business, the business needs to keep going with someone who knows what they’re doing. Sure, the individual buying your business may change things around, but the sale will be that much easier if you and they can rely on someone to help them through the transition.
If there’s an opportunity
Every now and again, something comes along that makes selling your business the smartest possible decision. If a larger business enters territory you’ve traditionally worked, they may be willing to look into purchasing your business. Don’t be afraid to hear offers.
When the business grows beyond your knowledge
You may find that as a founder of a business, you have a particular set of skills. Perhaps you’re an expert in residential restoration or water damage mitigation. However, as your business grows, you may begin serving business customers or work fire or other damage. This is a simplistic example, but the point is the same - if your business has grown beyond your expert knowledge, it could be a sign that it’s time to sell.
That’s what we’re here for. ResCon specializes in preparing your business for sale, getting top dollar and helping that sale close. And, your business is probably worth more than you think it is, meaning you can sell sooner than you think.