Is It Time For A Change?
What To Do When Your Business Isn't Fun Anymore
(Cont. page 2 of 2)
By Robert Hughes
A big advantage to selling a business in the greater Palm Springs area is that this is one of the top destination places in the world. New people are moving into the area every day and many more dream of being able to own their own business here, especially if it means trading the 'big city' or cold, blustery winters, for this magical resort life-style. To many, owning their own business, maybe yours-- represents a way of life, the American dream, gaining command of their own destiny.
As a business owner, you might find yourself running out of steam, or perhaps the business has taken a down turn, but don't despair. You are what you think about. Sing a song, get out in front of that crowd and, by George, lead the parade to sell your business. Although directly negotiating price with a prospect is not recommended, that's what your broker is best equipped to do, attitude is as critical a component to your success in finding a buyer, as it is in any other facet of life. In business as in life, things change. It's simply not a big deal if your business is not working out for you at this moment in time. Pass the buck, so to speak, along with all your sweat equity, good will, inventory, lease, etc. and set out to find the right person to carry on your work and grow the business.
To quote Caddy Shack, "...don't sell yourself short" when it comes to cashing out of your business. Over time, you've become focused on the negative aspects of your business; the payables, meeting payroll, making the rent, advertising, and on and on. These issues were all there when you first started the business, but as time goes on and perhaps sales drop a bit, you fall into the habit of spending quality time looking at the negative elements. Don't allow this mindset to hamper your prospects. You should face the challenge of selling your business with all the same energy and enthusiasm you felt when you first opened your doors. We are fortunate to already live in a prime location where many talented individuals dream of living and working. You are poised to offer them the means to live out their dream.
This past year a woman here in town with a home and office cleaning service decided to move out of state to be closer to her family. As far as she was concerned she would just notify her clients that she'd be leaving the area. We suggested she sell her service business; a classified ad and a few weeks later and she had sold her list of clients, supplies, and the good will of her name for a price tag that was in the tens of thousands.
Another specialty retailer in town sold his business after many years. Then, after a five-year absence from the world of retailing, this entrepreneur felt recharged and ready to give it another go. He reopened a storefront in the heart of Palm Springs and, a year later, the business is thriving under his reenergized direction.
Closer to home, my wife owned an art studio and gift store in Temecula. After growing tired of the commute, one day she up and decided to sell. Excited at the prospect of going on to something new and leaving the driving to someone else, the first person she pulled aside to share her sudden decision with, made an offer on the spot. The prospective new owner said she had been praying that one day the shop would come up for sale. Two weeks of training later, my wife handed the keys over to the new owner.
Selling your business is an important decision, second only to having taken the original step of buying or starting up in the first place. You would never embark on a new business venture without extreme optimism and enthusiasm, the same energy should exist when it comes time to sell your dream-- don't sell without giving it 110% effort.
Here are the recommended steps to realize your dream of moving on;
- Decide to decide.
- Be sure your books are in good order so as to be easily understood by someone who is not familiar with your operation.
- Clean up the property, after all we're not considering a "Going Out of Business Sale"; we're proposing a "Going Into Business Sale".
- Find someone with the National Association of Certified Valuation Analysts. Call (801) 486-0600 to request a listing of local certified agents.
- Decide on a marketing plan and establish a budget to accomplish it.
- Some directions to consider;
- classified advertising
- a direct mail program
- postings on Internet sights that promote the greater Palm Springs area
- advertise outside the immediate area; Los Angeles, Orange County, San Diego, the bay area.
- Or avoid the above steps and retain the full marketing services and expertise of a commercial real estate firm. Let them do all the time and money-consuming promotions, advertising, pre-qualifying appointments, and detail management that go into locating quality prospective buyers.
There will always be someone out there willing to trade places with you. Just think positive. It's been said that you achieve a powerful peace of mind once you decide to sell. Of course, you don't actually ever give up on yourself; you're just taking your hopes and dreams and moving on to a new level. Happy selling!
Author Profile:
Robert Hughes is a commercial broker and president of Hughes Properties, Inc. in Palm Springs. An MPA from USC, Hughes has a wide variety of entrepreneurial experience with the personal ownership and sale of over sixteen businesses, including founder and publisher of Orange Coast Magazine. Additional business tips can be found at www.hughesproperties.com.
