In many ways, year-end couldn’t come at a worse time. As if December holiday crazymaking wasn’t enough, as a business owner you’re also responsible for compiling an entire year’s worth of reporting data into comprehensible form for your accountant, with enough time to spare to make proactive decisions that will improve your tax standing and long-term profitability.
No pressure.
A proactive bookkeeping system can help lessen the load this time of year because you’re working on a monthly basis to compile financials into action items BEFORE the year-end crunch. If you need some help preventing this maddening scenario next year, let’s talk (real) soon:
app.acuityscheduling.com/schedule.php?owner=19530343
Let me also take this moment to remind you that your final 2023 estimated tax payment is due January 16. You can use any of the following methods to make your payments:
- Direct pay (payment straight from your bank account)
- Your IRS online account
- The EFTPS (Electronic Federal Tax Payment System) – allows for payment scheduling and tracking
- Use your debit/credit card in the IRS Digital Wallet
If you need to discuss any that you’ve missed this year before tax filing, I’m here for you.
Now, as you do EOY things, you might be looking at some really good financial data coming in and wondering if now is the right time to sell your Skagit County business and move on to other things. There are lots of other good reasons to sell your business: retirement is near, you’ve taken it as far as you can (or want to), you lack the passion to work on it anymore, etc.
Regardless of your reasons, there are obviously many financial and practical considerations that should play into your decision. If you think next year might be the time to sell your business, this one’s for you…
Before You Sell Your Skagit County Business: Making a Plan (P1)
“Life and business are all about timing.” ― Richard Branson
The sale of a business is replete with serious financial considerations. This note is not intended to be an exhaustive study. Rather, I have four important questions for you to start with.
1. Timing is everything
This adage is oh so relevant when it’s time to sell your business. Market conditions, both in your industry and the broader economy, can play a big factor in pricing. Your own internal knowledge of your company should play a strong role as well: will your business be better positioned financially in 5-10 years? And knowing the true value of your business only comes with systemic and strategic financial analysis.
2. Consider alternatives
Before you rush into selling your business, take a moment to consider alternative strategies. Growing or scaling your business can increase its value or provide better financial benefit for you long-term. Diversifying your product/service offerings or entering new markets should all be considered, depending on your long-term lifestyle and financial goals.
3. People matter
Get a clear understanding of what will be expected of you during and after the sale process. Will you need to stay on as an advisor or manager for a specific period after the sale? Will you be part of the transition, or will you have to step away completely? Are you okay with those terms?
Furthermore, consider the fate of your loyal staff members. According to the International Business Brokers Association, 70% of business sales involve a staff transition. Will the new owner retain your employees, or will there be layoffs? Communicate openly so you, and your team, aren’t surprised after you sign.
4. Have a plan for after the sale
Selling your business isn’t just about the transaction itself. Consider what your life will look like afterward. If you’re retiring, fund availability may impact your timeline. If you already have plans to start something new, hash out what that means. If you want to stay involved in the business, make sure that’s spelled out in the fine print.
And if, after all of this, you’re ready to move forward and sell your Mount Vernon business, there are tax and financial considerations to prepare for. That’s what I’ll be talking about next week.
Helping you prepare for the next stage of your business journey,
Steve Padgett