Everything comes to an end. It’s a tough pill to swallow, but it’s the truth – and yes, that includes your business. If you haven’t been positioning your business and planning for retirement, you’re going to be in trouble when that day finally comes.

According to a recent study, one group of owners is having a particularly tough time accepting this fact: The Baby Boomer Generation. The 2014 Gallup survey found that nearly half of the baby boomers say they don’t expect to retire until 66, if ever at all.

Business owners push off retirement for many reasons. They’re waiting for a sellers’ market, the right age or they just don’t feel ready yet.

The dirty little secret is this: There’s never a “perfect” time to sell your business. It’s not going to be comfortable, and you’ll always second-guess yourself – that’s just part of being a business owner!

It can be easy to reminisce about the days when you were 25 and fresh into the print-related industry (or maybe you hadn’t even been introduced yet). It probably seemed like those days were going to last forever. But they won’t. Suddenly, you’re 60 years old and you wonder where the time went.

Many business owners falsely believe that actually selling their business is the toughest part of the process. But buyers are plentiful – and they’re always looking for a great new business to purchase. The real work comes years before, as you prepare for the sale. Moreover, it’s never too early to start planning. Preparing yourself and your business for selling takes a long time, often more than two years. Plus, while it’s true that everything comes to an end, it’s also true that you never know when that end will come.

Illness can strike you or a loved one, divorce can erupt… heck, you might even need to bail out a sibling who’s in a financial jam. You never know! The only way to be ready for the unexpected is to prepare your business for selling well ahead of time.

So what can you do to start preparing right now? Start with seven important preparations.

Seven Ways to Prepare Your Business for the Open Market
Planning to sell your business can be scary. If you’ve never done it before, you probably don’t have the slightest clue where to start. Here are seven steps to take:
1. Get your finances in order – If there’s one thing that can turn off a prospective buyer, it’s sloppy financial records. Buyers want hard evidence of current profits and growth potential, and would be hard-pressed to close a deal without it.

That’s why experts recommend instilling confidence in your buyers by getting audited financial records from the previous several years.
Even if you’re a young owner and selling isn’t on the horizon, having your finances in order is always a good idea. Organizing your finances is a great first step toward ensuring you’re always prepared.

2. Protect your intellectual property – The last thing you want is to begin negotiating with a buyer, only to discover that your company has violated a trademark or copyright.

To avoid this unseemly fate, plan well ahead to protect your intellectual property. That includes having every employee sign a confidentiality agreement and non-disclosure. If you happen to stumble upon an incidental trademark infringement, be glad you uncovered it early in the process. It’s always easier to fix your mistakes sooner than later.

3. Ensure your business isn’t overly-dependent upon you  –  A buyer wants to know that they’ll be able to step in and run your business successfully in your absence. That’s why businesses that are less dependent upon a single person tend to sell for more.

If your business hinges on your creative expertise, keep detailed records of your procedures. Having a strong management team also shows prospective buyers that your business is in good hands, setting it up for success long after you’re gone.

4. Know your business’s true value – Many business owners think they know their company’s value but don’t realize the complexities of an accurate valuation. To understand your business’s true value – not just an estimation – you’ll need an accredited, objective valuation.

If your valuation comes back lower than expected, it may be worthwhile to spend time trying to bulk up your numbers. That could include securing some bigger contracts or making long-term investments.

5. Broaden your customer base – Big clients are great for growing your business quickly. However, if they comprise more than 15% of your revenue stream, potential buyers may stay clear.

It’s no wonder why. Reliance on just a couple of big clients creates a huge amount of risk for your business should they leave. Give yourself some cushion room by diversifying your clientele.

6. Prepare emotionally, plan for the future – One of the biggest mistakes business owners make is assuming they’ll be able to sell their company on a dime. Unless you’ve prepared far ahead of time, you could find several factors holding you back – starting with you.

Business owners have a unique relationship with their profession. Your business is your baby, and saying goodbye can be very emotional. In fact, some owners struggle so much with the prospect that they never make plans for retirement and decide they’d rather die at their desk.

There is more to life than work. If you’re shielding your eyes from the light at the end of the tunnel, a transition consultant can help you get your bearings. They’ll help plan for a meaningful retirement so you can look forward to your golden years.

7. Don’t forget about your business – As you can tell, preparing to sell is no easy task. Many owners get so sucked into the process that they lose focus on growing the company.

Create an internal or external team that can help orchestrate the sale, so you can keep your eye on the business. I’d recommend an outside source, unless you’re an enormous company like 3M, which has its own internal M&A resources.

Hopefully my arguments and suggestions for preparation have resonated with you. But for those of you who aren’t yet convinced, allow me to speak a little more candidly and leave you with one final analogy.

Think Like a Free Agent to Sell Your Business
I love football. In fact, I kind of wish I was a football player. But lo and behold, genetics prevail, so here we are.

However, one day not too long ago, I had a comforting realization. I may not be a football player, but I have a lot in common with a free agent – and you do too! Because if you want to set yourself up for a lucrative endgame, you need a lot of foresight – just like a free agent.

I know it might seem a little far-fetched (and possibly desperate), but bare with me. Let’s consider Russell Wilson (the star quarterback for the Seattle Seahawks for you non-football fans). He’s not a free agent until next year, but he’s already trying to sell his talent for $150 million. He’s not waiting until the end of his contract to start selling himself – he’s preparing right now.

It’s not that different for a business owner who eventually wants to sell his or her business, even if that’s 20 years away. Sellers are like future free agents – at some point, you’ll need to sell yourself (or rather your business).

Who’s the owner? The buyer of course, looking for a talented player to join their team. The problem is that most owners wait until they near retirement to formulate a play to put them in the end zone. They think they’re on the one-yard line and all they need to do is punch it in and close a deal. Then, they jump into the game and realize they’re really on the 30-yard line. Time to call an audible, right? Wrong.
If you discover your business isn’t ready to sell at 65 years old, you’re not going to have the time or energy to do what’s necessary.

Everything ends, your business included. That means one way or another, you are going to retire and exit the game. Think like a free agent and start planning right now so you can retire on your own terms!



Rock LaManna, President and CEO of LaManna Alliance, helps printing owners and CEOs use their company financials to prioritize and choose the proper strategic path. Rock can be reached by email at [email protected].