A flood of small business owners are ready to sell. Most are not prepared

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A flood of small business owners are ready to sell. Most are not prepared GlobeSmallBiz

The owner of Edmonton-based Rebel Heart Trucking hired Josh Laczko, above, as a part-time worker and was impressed with his reliability, knowledge and overall competence. This allowed the owner to begin a transition to Mr. Laczko purchasing the company.If you’re planning to sell a business in the next few years, you’re not alone. And that’s not good news for you. As Canada’s baby boomer-dominated small-business owners age into retirement, the market is becoming uncomfortably crowded.

So, in that field of under-prepared businesses, it can be easier to stand out if an entrepreneur has the patience to proceed with the months – or years – of preparation needed beforehand.Microdea Inc., “We built a really good team and delegated responsibility,” says Mr. Hoffman, “so when it was time to sell, we weren’t involved in the day-to-day.”They had also identified a likely buyer: another family-owned B2B publisher, based in the United States, which they hoped would protect the business’s legacy, brands and nearly 50 employees. But even then, striking the deal took more than a year, as the buyers combed through Fulcrum’s financials, history, customers and market position.

At Fulcrum, that meant keeping sales representatives working hard and solidifying relationships with clients and suppliers – in writing. Says Mr. Hoffman: “Buyers want to see re-signed annual contracts and committed revenue.”

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GlobeSmallBiz TonyRobbins, in his business mastery class, explains the importance of having an exit strategy in your business. I haven't personally attended it but I just got one of his audio books that I believe covers this topic. Paramount for any business owner.

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