Published on 12/09/2023 by Any Business.Com.Au

Taking the Emotion Out of Selling a Business

Whether you started your business from scratch, took over the family trade or bought an established operation, when it comes time to sell it's hard not to get caught up in the emotion of saying goodbye.

There's no rule book when it comes to controlling your emotions and all of those feelings are completely normal when parting with your beloved business.

We've done our best to compile a list of suggested steps that will help you to ensure your business is sold without having your emotions cloud your judgement.

Define your objectives

Clearly identify your goals and objectives when selling the business. This may include financial goals, personal aspirations, or commercial reasons. Having a clear understanding of what you want to achieve will help you stay focused on the desired outcome.

Conduct a thorough evaluation

Assess the financial performance, market position, growth potential, and other relevant factors of your business objectively. Look at the hard data and gather expert opinions from industry experts.

Getting a full business appraisal from a registered business broker will provide a more realistic perspective on achievable outcomes.

Seek professional advice

Engage with professional advisors such as accountants, lawyers and business brokers who can provide objective insights and guide you through the process.

Their expertise and experience can help you navigate the emotional aspects and focus on commercial considerations.

Research the market

Allow experienced business brokers to assist you in gaining a deep understanding of your industry's market conditions and trends.

Business brokers will analyse the competitive landscape and the potential buyer pool to identify opportunities and challenges. This knowledge will help you make informed decisions based on market realities rather than emotional attachments.

Develop a comprehensive sales strategy based on market knowledge

Create a well-thought-out plan for selling your business. Determine the most appropriate sales channels, directly target potential buyers and craft a compelling value proposition.

By following a structured strategy, it can reduce emotional influences and focus on maximising commercial value.

Maintain confidentiality

Confidentiality is crucial during the selling process. Minimise discussions about the sale with employees, suppliers, and customers until a deal is finalised.

This approach helps to reduce emotional disruptions and ensures the continuity of operations. Most business brokers don't share any business particulars until a Non-disclosure Agreement has been signed.

Negotiate objectively

During negotiations, focus on achieving terms and conditions that align with your commercial objectives. A business broker may assist you in setting realistic expectations and explaining that you may need to be prepared to make compromises if necessary.

Discussions at this stage will be focused on value, financials, and the terms of the deal rather than personal attachments. Negotiating with a clear focus on achievable outcomes is critical.

Seek alternative perspectives

Consider seeking input from trusted advisors or mentors who are not emotionally invested in the business.

They can offer fresh perspectives, challenge your assumptions, and provide objective feedback to help you make rational decisions.

Take time to reflect

Before making any final decisions, take some time to reflect on the potential outcomes and their implications.

Evaluate the pros and cons objectively, weighing the commercial factors against any emotional attachments. This reflection will help you gain clarity and make a well-informed decision.

Consult with your support network

Lean on your support networks, such as family and friends, for emotional support during this process. Having a strong support system can help you manage the emotional aspects while staying focused on commercial considerations.

Remember, it's natural to have emotions when you sell the business you've always loved, but by following these steps and consciously separating emotions from commercial decision-making, you can increase the likelihood of making the right choice.

Article contributed by SOT Business Brokers Perth.

AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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