We're seeing a high volume of shadow inventory in the business-for-sale market.
(article continues below)
More than a few stone carving business owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Preparing Your Employees
Business sellers walk a fine line when it comes to preparing their employees for a sale. You're concerned about confidentiality, and rightfully so. But sooner or later, employees will begin to suspect that something is up, especially when you start parading prospective buyers through the business. Consider informing your key employees first, followed by the rest of your workforce later in the process. Above all else, it's imperative to encourage your workers to maintain a positive attitude and work ethic. If you're having trouble navigating the employee minefield, consult a business broker for advice.
Are You the Right Person to Sell Your Business?
As the owner, you are both the best and worst person to sell your stone carving business. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your stone carving business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. Business brokers and other third-party consultants bring objectivity to the sale process and give you much-needed insight about buyers' mindsets.
Sale Preparation Timeframes
It's critical to properly plan for the sale ofa stone carving business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a stone carving business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Given your interest in exit planning and in stone carving businesses, you might find these additional resources to be of interest.
If starting a stone carving business is on your agenda, these guides will help you get started:
If you consider stone carving businesses to be sales prospects, this isn't the best resource for you on our site. These helpful guides are more appropriate for you:
If you are looking for exit plan advice for a different kind of business, please browse our list of exit planning guides below.