Naperville Small Business Lawyer Offers Advice on Planning for Selling Your Business

selling your business, small business, Naperville business lawyerWhen you create a new company, whether it is closely-held family business, business franchise, or any other type of business entity, you take responsibility for every stage of its life cycle. Purchasing an existing business also leaves you responsible for the company for the duration of your ownership. I often get asked by clients, however, about knowing when the time is right to get out and sell the business. For many business owners, this is a very real concern, and one that should be considered right from the very beginning.

Setting Your Business Goals

Before you start a business or buy an existing one, it is very important to understand what your intentions are regarding the legacy and the future of the company. It is not good enough to simply “see what happens down the road.” By planning to enter a particular field or industry, you have probably done a great deal of research to gain insight into the various aspects of operating within the current commercial and legal landscape.

Too many new business owners, however, do not fully consider their own personal goals regarding the long-term status of the company. Even before opening for business on the first day, you should take the time to determine your plan for succession at the end of you ownership. Do you plan to own the business until you retire and then look for a buyer? Would you rather achieve a particular level of financial success and move on at that point? While there is no right or wrong answer, having a set plan will make the process of selling your business much easier when the time comes.

Benefits of Planning Ahead

Establishing a succession plan and knowing when you will consider selling your business can create a potentially very profitable situation for you as an owner for several reasons. Many owners only start looking to sell once business has taken a downward turn and they see no other opportunity. A sale grounded in desperation transfers a great deal of the advantage to a buyer and away from the seller, often leading to a significantly reduced sale price. An owner who has decided in advance to maximize the company’s value before selling is poised to get the highest return on his or her investment by moving at the right time, rather than being forced by necessity.

Planning in advance for selling your business can also help keep you focused on accurate and helpful bookkeeping strategies. Many business owners tend to integrate personal and business finances which then must be separated, often at great inconvenience, when a sale is on the horizon. If you work every day as if a sale of your business is imminent, you will likely find that you are just about ready when the time is right.

Of course, the process of selling your business is much more complicated than simply preparing in advance. A qualified business lawyer can help you with your succession planning and the actual sale of your company. Contact an experienced small business attorney in Naperville today to help secure your financial future and that of your company.