Workers Compensation Lawyers
There are many reasons you might want to sell your business, but chances are good that you hope to simplify your life. It takes a lot to operate a small business, and selling it can be a way to reduce your obligations and get a large sum of money at the same time. However, selling your business will likely come with its own set of challenges. If you are prepared for these challenges, you can overcome them easily. Learn about two of the biggest challenges that a business seller might face.
1. Employees’ Worries
If your business has employees, it is essentially unavoidable that they will be worried to hear that you are selling the business. Additionally, some employees may begin looking for other opportunities, which may result in them leaving before you even sell the business. You will need to be certain that you have a strong work force up until the very last day you own the business.
The best approach to this issue is to be completely open with your employees. Tell them what your intentions are at every step in the process and be sure they are among the very first people you tell when you fully decide to sell. This shows them that you respect them and want them to be prosperous whether they leave or stay. If you sell it to someone who does not intend to keep the business operational, your employees should have enough at least a few months to search for a different job.
2. Seller Financing
Seller financing is when the buyer pays monthly payments to the seller, rather than a lump sum up front. This is not appealing for sellers, but sometimes it is necessary to find interested buyers. You should try to avoid seller financing if you can, because it puts you at risk of the buyer defaulting on the payments.
If you cannot avoid seller financing, hire a business lawyer in Melbourne, FL to write the contract. It needs to be solid to protect you. The contract should include what the consequences will be if the buyer defaults on the payments. The moment the buyer defaults on a payment, you should immediately hire an attorney. Additionally, you should avoid selling the business to anyone who seems untrustworthy, naïve, or inexperienced. This will improve the odds that the new owner will be able to keep the business successful and make the payments to you. It may be a good idea to hold off on selling until the market is in your favor to avoid financing.
Thanks to The Law Offices of Arcadier, Biggie & Wood for their insight into business law and selling a small business.