The first question to ask yourself is – will I ever want to sell my office? If the answer is NO, then what your office is worth is immaterial. You aren’t going to sell it – no matter what the future holds! If you truly believe the previous sentence is an accurate description of your situation you must have the world’s best crystal ball.
Retirement can be beautiful if you have a plan
Sooner or later we are all either going to sell our office(s), even if it’s to our children, or it’s going to be sold for us. With that thought in mind, just like death and taxes, it seems to make sense to be prepared for the inevitable. If your answer is YES, then you need to take a really hard look at what you have through the eyes of a buyer. I hope what you see, or are shown by an impartial observer, does not surprise you.
On three separate occasions I have been fortunate enough to be able to sell my businesses with relative ease, but I was ready and so were my offices. That does sound a little boastful, but it’s true.
If you are even partially prepared for the day when a millionaire calls saying he/she wants to buy your office(s), you should be able to answer the following questions without needing to consult a single piece of paper:
Has your business been profitable for at least the past three years?
Is your business growing? If so, at what rate per year?
Have you researched how to price your business?
Can your business earn the same level of profit without you there to see clients?
Is your business a community leader in your profession?
Do you have a ratio of old to new clients somewhere around 60/40? (Purely my own guideline)
Are your employees likely to remain after you leave?
Have you invested in your business to keep it up to date, technically/physically?
Do you have a book ready to show prospective buyers that details at least the basic facts about your business?
(demographics/sales/profit/marketing/trends/facilities/personnel/referral numbers/etc.
And do you have a good (realistic) idea of what price you would ask for your office?
Do you have a realistic plan for what you will be doing after you sell? If your answer to this question is simply –to retire, you first need to get yourself a life. People who retire without a plan for the future tend to have a shorter future than those who stay active.
The above questions, only touch on some of the larger issues you may need to address before moving on to the hundred other details that you’ll need to attend to before your business is ready for sale. Even if you do not plan to sell for another five or ten years, today is not too early to start answering these questions. The more complete your preparation, the greater the likelihood of your success. Some of your preparations will be completed in a few hours, others may take several years. As a wise man once said “a journey of a thousand miles starts with the first step” – or something like that.
Is today too soon to start your journey? Probably not. None of us is on this planet with a money back guarantee. If a disaster occurs, and you or your family must quickly sell the business – are you ready? Almost ready? or, does “Do not have a clue” apply?
Finally: If you have sold your office(s) in the past three years, or if you are in the business of buying offices, PLEASE let me know what you think of the above? Have I missed the mark? I hope not, but please let me know, good or bad. Other readers who are thinking of selling or buying an office may find the information useful.
