4 questions to ask when selling a business

Sometimes selling your business is a necessity and other times it is an opportunity, but in either case it can be a challenge. It can be difficult to gauge the viability of the interest and offers you receive while still keeping the business going. 

According to Forbes, asking yourself the following questions and considering the answers carefully can help make the process easier. 

1. What is your time frame?

Are you ready to sell as soon as possible, or are you willing to work through the process for several months? Deciding this before selling can help you identify potential buyers who are on a similar timetable. 

2. When should you tell your employees?

Telling your employees about the sale can be one of the most difficult aspects of it. Bear in mind that not everyone at your company has to know all at once. Before you inform your employees about the sale, anticipate the questions they are likely to ask and prepare to answer them as concretely and definitively as you can. 

3. What kind of experience does your potential buyer have?

You should not necessarily disqualify a potential buyer who would be operating a business for the first time. However, the right buyer should have some applicable experience that he or she can bring to bear when taking possession of your company. 

4. Can the potential buyer produce a Personal Financial Statement?

Because most buyers are not able to pay cash, this statement is really crucial. It demonstrates that the buyer has the ability to raise the capital to not only cover the purchase price but fund the first year of operation.