Sell Your Business as if it will Not Sell
Posted by Mark Bennett on Tue, Apr 06, 2023 @ 05:53 PM
At some stage in the selling process, a seller will inevitably ask if they should restock inventory, replace a person, run ads, or any number of thing they would normally do. The answer is always the same. "Run Your Business as if it will Not Sell." There are never any guarantees that a business will sell, even if the contracts are signed. I have seen seemingly done deals fall apart because of deaths, the economy crashed, banks decide not to lend, or others reasons I don't like to think about. You don't want to be caught neglecting to run you business as usual at that point.
When a buyer is considering buying a business, generally it is because the seller is doing things right and the buyer wants in on it. He sees how the buyer runs things and has a healthy respect for the business they have built. Many times the buyer requests or requires that the seller stay on to run things for a few weeks to a few years. During this period when the business is in play is no time to change the way you would manage your company. It is crucial that people are hired and trained, that raw materials are purchased, that inventory levels are maintained, and most importantly that sales are made.
Even if a buyer requests that you don't rehire people or let inventories drop, run it as if they had never entered the picture, because they might disappear tomorrow. If the seller disappears and you are left standing where you started, you will be glad that you did not disrupt your normal way of doing business to accommodate someone that is no longer around. So the answer to the question is always the same. Run it as if it won't sell.