Take Time When Selling Your Business

Make yourself visible

Dear Ellie:

I have had a successful business for more than 20 years. I am a manufacturer’s rep for dancewear. My territory includes four western states, and I travel to see my clients, who own dancewear retail stores, a few times a year. I have one full-time employee who knows the business well and does my bookkeeping.

The time has come for me to think about retiring from my business. I’d like more free time to travel with my husband and grandchildren. What steps should I take? Jackie

Dear Jackie:

You are very fortunate, and pretty talented, too. It sounds like you have built up a fine business with many assets. If you are not in a hurry to sell your business, you should take your time and find the right buyer. I’m sure that you feel loyal to your clients, your manufacturers, and your employee and want to see them all prosper after you leave the business. I’d guess that, economic downturn or not, parents will continue to give their daughters and sons dance lessons and opportunities to perform. Adults, too, are increasingly interested in dancing for pleasure and competitively.

The first thing I suggest is that you contact your regional Small Business Administration (SBA) office. There are also local Small Business Development Centers (SBDCs) spread throughout each state. The SBDCs serve people who are interested in owning their own businesses and may know of a potential buyer. These offices also might host local social events and programs to introduce potential small-business people to one another and to teach various aspects of starting a small business, such as how to write a business plan or how to get financing. Just look in the phone book, or go online, to locate your nearest SBDC or SBA office. Get a name and phone number, and start setting up appointments, attending meetings, and networking.

In the regional SBA offices, there is usually contact information about SCORE, an agency that matches senior volunteer executives with small-business people. Although I have never used SCORE’s services, I am told that they do a good job in assisting people with their business issues.

I suggest that you also consult your phone book and the Internet about business brokers. Many very talented people have professional business brokerages that help match business buyers and sellers. The broker not only finds the match, but also might assist with valuation, financing, counseling, banking issues, advertising, taxes, legal matters, and other important aspects of transferring the ownership of a business.

Many people are interested in being self-employed and running their own businesses, but don’t know where to start on that complex agenda. They are often searching for someone who has a successful business to buy—someone like you! Pursue ways to make yourself visible to potential buyers. Both of you should be able to profit from your strategy.
Good luck! Ellie

By Elinor Miller Greenberg, EdD
Dear Ellie Blog