If you are like most home service business owners, you’ve thought about selling at least once. Do you wonder when the right time is, what you should sell it for and how to create an exit strategy?
Tune in to this episode of the Profitable Home Services podcast where I chat with Steve Juetten, a seasoned exit strategist. Discover the secrets to exiting your business at its peak value and learn why timing is everything. Steve will walk you through his five-step exit blueprint, designed to maximize your profits and ensure a smooth transition for you, your employees, and your customers. Don’t let burnout or a decline in business value catch you off guard.
In this episode share how to:
- Learn to identify the optimal moment to sell your business
- Understand the emotional challenges of selling a business
- Discover the importance of strategic planning in the sale process
- Explore different options for selling your business
- Learn how to document processes and systems within your business to increase its value
- Find out how to conduct thorough due diligence before selling
- Get a step-by-step guide on preparing your business for sale
Key Moments:
- [00:05:07] Introduction of Steve Juetten
- [00:07:27] When is the right time to sell?
- [00:12:32] Optimizing value and selling a business
- [00:13:06] Five steps to selling a business
- [00:17:36] Getting the business ready
- [00:21:52] Valuing the business
- [00:30:36] Broker agreements and alternatives
- [00:34:30] Options for selling a business
- [00:37:45] Negotiating the terms of sale
- [00:39:23] Learning from past mistakes
- [00:42:19] Due diligence and buyer assessment
- [00:46:59] Importance of documenting processes
Timing is Everything
One of the most pressing questions I encounter from clients is about the ‘when’ and ‘how’ of exiting their business. It’s a one-shot deal, and everyone wants to get it right. Steve’s advice is clear: sell when your profits are on the rise. It’s all about timing the market to your advantage. The common pitfall? Waiting too long. When the revenues decline and your passion wanes, so does the attractiveness of your business to potential buyers.
The Emotional and Operational Challenges
Selling a business isn’t just a financial transaction; it’s an emotional journey. Steve points out that the dual challenge of managing your business while trying to sell it can be overwhelming. Energy and interest levels are crucial here. If you’re burnt out, the process becomes even more strenuous, and the likelihood of a successful sale diminishes.
The Ripple Effect of Selling
Steve emphasizes that selling your business isn’t just about you. It’s about your employees, customers, and vendors. A well-executed exit strategy considers all stakeholders, ensuring a positive outcome for everyone involved.
The Five Steps to a Successful Sale
Steve lays out a five-step plan for selling your business:
- Set Your Goals: Define what you want to achieve with the sale.
- Assessment: Look at your business through the eyes of a buyer.
- Improvement: Enhance aspects of your business that are valuable to buyers.
- Networking: Connect with potential buyers.
- The Sale Process: Navigate through due diligence, negotiation, and legal compliance.
This structured approach is all about planning and giving yourself the time to optimize each step.
The Timeline for Selling
How long does it take to sell a business? It varies. If you’re in a rush due to personal circumstances, it could be as quick as 6 to 9 months. But ideally, you’re looking at a timeline that allows for thorough preparation and maximization of value.
Enhancing Profitability and Preparing for Sale
Steve advises on enhancing profitability, reducing debt, and documenting procedures to make your business more attractive to buyers. He also discusses the importance of a realistic valuation and the complexities of running and selling a business simultaneously.
The Pitfalls of Poor Planning
The lack of documented processes and systems can be a significant profit leak when selling your business. Steve and I discuss the importance of due diligence and understanding the terms and conditions of the sale to avoid common pitfalls.
Seeking Professional Guidance
Throughout our conversation, the recurring theme is the importance of seeking professional guidance. As an experienced advisor, I can’t stress enough the value of having an expert by your side to navigate the complexities of selling your business.
Conclusion: The Hidden Profit Leak
Our discussion concludes with a focus on the hidden profit leak in many businesses: the lack of documented processes and systems. Organizing and documenting your business operations is essential to enhance its value and appeal to potential buyers.
About Steve – Steve Juetten is the exit wizard for small to medium-sized service company owners. He’s the secret sauce to supercharge effective and profitable business exits through careful planning and nimble execution. Drawing from the lessons he learned in the sale of his own financial advisor practice, Steve is a go-to guru to his fellow entrepreneurs looking to win on the way out.
Connect With Steve:
Website: https://bridgegatepartners.com/
LinkedIn: https://www.linkedin.com/in/stevejuettencfp/
Business Exit Made Simple – 5 Vital Steps To Selling Free Report : www.simplebusinessexit.com
Book Your Profit Impact Call – I’ll Find You $50,000 in Profits in 30 Minutes With a Live Profit Accelerator Simulator
