The construction industry is booming, and there doesn’t appear to be an end in sight. That’s great news if selling your small business is anywhere on your radar.
As someone who has built a successful business, maybe you have started to think about the next phase of your life. That could be pivoting into a new career or getting ready for retirement. Either way, selling a small business is an exciting step but it takes intention and preparation.
If you’re considering selling your business to employees or a family member, then you have one of the key components of the sale in place. You’ve got a potential buyer! Having a buyer already in mind changes the process. You probably won’t have to hire (or pay) a business broker, and you won’t have to go through the process of marketing your business or vetting interested parties.
It’s still important to ensure you’re mentally prepared for the transition and that you’ve gotten everything to navigate the sales process successfully.
Selling a Small Business to Employees or Loved Ones
For contractors and other small-business owners, selling what you’ve worked so hard to build can be bittersweet. It’s exciting to move to the next phase of your life, but you want to know that your business is going to end up in the right hands.
Selling to a key employee or family member can be a very fulfilling experience. They already understand what you do, and in the case of key employees, they know the ins and outs of your business. Your best employees share your work ethic, understand your vision for the business, and are well positioned to successfully take over operations.
So, if you’re preparing to take the leap, here are some tips for how you can best prepare to hand over the reins. Being intentional in your preparation can help facilitate a successful sale.
1. Know Your Why
As with all big decisions in life, knowing your “why” gives you direction and perseverance. When you can remember and reflect on the reasons you’re moving on from your business, it will likely keep you inspired when challenging moments arise and the finish line feels out of reach.
The reality is that selling a business can be arduous. Even if you already have a buyer in mind, and that buyer is someone you know, this can be a complex process that sometimes requires patience and stamina.
2. Plan Ahead on Finances and Personnel
Give yourself ample time to prepare for the sale of your business. …….