How to sell your business for more money

Cartoon by author

“Anyone who takes a ‘we’ll figure out how to profit in the future’ attitude to business is being ridiculous.” — Jason Fried, Rework

Here’s a largely ignored secret about owning a business. Often you make more money selling the business than running it.

Most business owners I speak with are so fixated on growth that they ignore the option to exit. They know all about the value of the car they drive and how to sell it. But, when it comes to what might be their biggest asset, they haven’t got a clue.

Let’s start with why selling your business should be on your radar.

• A typical sale could fetch 3 to 5 times your annual take home and all in one payout.
• The sale might allow you to retire early, or exercise your start-up muscles with a new venture.
• All the problems, irritations, and to-do’s that keep you awake at night are magically no longer yours.
• In many cases, new leadership can mean job security and new opportunities for your team.

Even with all these incentives, what’s most important is that you are motivated to sell your baby.

“Your business is your baby. You birthed it, fed it, mopped up the poop, and kept it safe. Of course, you feel protective.”