Herman: John L. Herman Jr., Author

Knowing When To Sell

If you plan to sell your business in the next eighteen months I have some advice for you. Sell it now. Immediately. Today if possible.

Last week I did a radio interview where I spoke about buying a business at a bargain. The other smart thing you do to make money owning a business is knowing when to sell it. And the time to sell in the next eighteen months is sooner rather than later. Here are a few reasons why.

Credit is getting harder to obtain. If your buyer needs to borrow against his house to buy your business, he can’t get as much right now as he could have six months ago, and he will be able to get less in the coming months so therefore he can’t pay you as much.

Credit unavailable to your customers will make your sales slow. Last year may have been your peak year if you take last year, this year and next year as a three year “look” at your business. But if you look at the last three years of business, before 2008, you probably will be able to show higher sales and profits then you will start showing going forward. If people have less credit available and are choking on interest payments for Visa and MasterCard, then they might have to skip that stop at your business.

If you need to borrow money to stay afloat now you are going to commit business suicide because you will eventually have to pay off the debt when you do sell, and also pay the interest during the time you wait to sell. Taking a smaller price for your business now may make more sense than working another year or two and letting the bank or credit card companies get the benefit of your work. Sell today and go earn money elsewhere and you could be way ahead.

But how do I sell my business in a troubled economy? How do I know I am getting a fair price? The answer is to at least see what your options are so you can make an intelligent decision. Maybe if you are in this boat your free hour of consultation with me is your first life preserver to use.

AND NOW BACK TO THE FREE BOOK OFFER WE ARE DOING THIS WEEK:

OK. ANYONE WHO BUYS A COPY OF HERMANISMS ON THIS WEBSITE THIS WEEK…WILL GET A COPY OF THE INNKEEPER TALES INCLUDED FOR FREE!!!

JUST FILL THE ORDER FORM OUT FOR ONE COPY OF HERMANISMS AND I WILL INCLUDE A COPY OF THE INNKEEPER TALES WITH EACH SHIPMENT. LET ME KNOW IF YOU WANT THE BOOKS SIGNED. THE OFFER EXPIRES MIDNIGHT 3/7/08.

• Posted: 4 March 2008
• Comments: 1
• Category: Selling a business

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