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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Going cashless: Small business owners face pressure to accept plasticThe number of cash-only companies is dwindling in Canada, but there are still some holdouts GlobeSmallBiz it's globohomo. imagine when they can just turn off your money GlobeSmallBiz There are some stores I won’t frequent because they don’t have Interact. I rarely carry more than 50 dollars in cash, and I don’t want to use my VISA. If you’re want customers to come to your shop, you should be bending over backwards to make things easier for them. GlobeSmallBiz It’s not pressure. It’s forcing them to pay their taxes because you can’t hide behind a cash based system. Taxis and corner stores benefited for years in not paying taxes
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