by Kelly Deis of SoundPoint Consulting
The big question that many small business owners, closing in on the end of their working years, are asking is…WILL the sale of my small business help fund my retirement needs?
The statistics while currently on the upswing do not paint a great picture for business owners hoping to cash out with a lump sum necessary for retirement. Here are some statistics to consider:
- There are approximately 28 Million Small Businesses in the United States (Source: Business Insider)
- 43% of small business owners have no formal financial plan (Source: Exit Planning Institute)
- 5,409 businesses sold in first three quarters of 2013 as tracked by (BizBuySell.com)
- $180,000 – Average Sale Price for small businesses sold in first three quarters of 2013 as tracked by (BizBuySell.com)
- 26.7 million – the number of businesses employing 19 people or less – (US census data)
This topic came up during a recent meeting with one of our Kitsap SCORE clients. Actually, the question at hand was about selling a business, but the search for potential resources lead to an interesting, online resource for those who want to buy or sell.
To see a list of business currently for sale in Kitsap County, click here.
BizBuySell claims to be the internet’s largest business for sale marketplace. It lists businesses of all types, including established retailers and service providers, home-based businesses, potential startups and franchises. Potential buyers search by location, business type, and other preferences. Sellers can list their offer themselves or through a business broker.
They offer a free digital book called, “Guide to Selling Your Small Business” by Barbara Findlay Schenck. If you would prefer not to give them your name and contact information in exchange for the book, simply Google “Guide to Selling Your Small Business” to find a lot of other resources.
If you find this information useful, please leave a comment. If you have found an alternative resource for buying or selling a business that you refer, let us know. We’re committed to sharing the best information with Kitsap business owners that we can find.
A: It depends on what you want to do.
At first glance, this may sound like a difficult question to answer. But it’s an important one if you’re considering taking on a partner or selling your company.
If you’re in the market to buy an existing small business, you want to know exactly what you’re paying for, and how that value was determined.
There may be other situations where establishing the value of a business may be important. You may be considering spinning off part of your current business, or dealing with a dispute or litigation. Business value also figures in divorce proceedings and other cases where the value of one’s assets is factor. Continue reading
According to a Price Waterhouse Coopers survey, 75% of business owners report that they regretted selling their business. Some thought they had left money on the table or that their timing was off. Others said they did not understand their options and/or did not hire the right advisors. All owners said that if they could sell their business again, they would be better prepared.
So why aren’t most business owners adequately prepared for the biggest deal of their life – selling or transferring their business? They cite that they:
- Are bogged down with the day-to-day running of their business.
- Find it hard to change their mindset from growing a business to harvesting its value.
- Do not understand the value of an exit plan or what is entailed.
Does this sound like you? Continue reading