The perfect backdrop for a fresh start.

Selling a business is a significant decision, and one of the most critical aspects of this process is determining the right price.

Embarking on a pivotal crossroads in business? Discover the nuanced differences between selling and exiting strategies in our latest exploration. Delve into this decisive journey with us as we uncover the ideal path for your next chapter.

Selling a business is a significant decision that requires careful consideration and planning. It's not just about the financial aspects; it's also about timing, personal goals, and the readiness of your business for a transition. Evaluating Business Performance One of the primary considerations when deciding to sell or exit your business is its current performance and financial health. Here are key performance indicators to assess: Revenue and Profitability Evaluate your business's revenue trends and profitability. Is it on an upward trajectory, or have there been recent declines? A business with consistent growth is typically more attractive to buyers. Market Conditions Consider the current market conditions and industry trends. Is your business in an industry that's growing, stable, or declining? Buyers often seek businesses in thriving or stable sectors. Debt and Financial Obligations Examine your business's debt load and financial obligations. High levels of debt can reduce your selling price and limit your options for exit. Customer Base and Retention A strong and loyal customer base adds value to your business. High customer retention rates can make your business more appealing to buyers. Personal Goals and Readiness Your personal goals and readiness for a transition play a crucial role in the decision-making process: -Retirement Plans Consider your retirement plans and financial security. Selling your business may be a way to secure your retirement, but timing is essential to ensure you have enough funds. -Health and Lifestyle Your health and desired lifestyle can influence your decision. If you're looking for more leisure time or want to pursue other interests, selling might be the right choice. -Family and Succession Planning If you have family members or employees you want to pass the business to, succession planning becomes a critical factor. It may take time to prepare the next generation for leadership. -Business Value and Market Conditions The market conditions for selling a business can significantly impact your decision: Business Valuation Determine the current value of your business through a professional valuation. Understanding its worth is crucial for setting realistic expectations and negotiating a fair deal. Market Demand Assess the demand for businesses in your industry and size category. A seller's market with high demand can result in better offers. Timing and Preparation Timing is everything when selling or exiting your business: Exit Planning Proper exit planning can take years, so start early. This includes getting your financials in order, improving business processes, and identifying potential buyers or successors. Economic Conditions Consider economic conditions, both local and global. A robust economy can lead to better selling prices, while a recession might necessitate a delay. Personal Readiness Are you emotionally prepared to let go of your business? Selling can be an emotional process, and it's crucial to be mentally ready for the transition. Exit Options Evaluate your exit options. Selling your business isn't the only choice: -Passing It On If you have a family member or employee who wants to take over, passing the business on can be a fulfilling option. -Liquidation In cases where the business isn't profitable or marketable, liquidation might be the best choice to salvage remaining assets. -Mergers and Acquisitions Merging with or being acquired by another company can provide growth opportunities and a strategic exit. Deciding when to sell or exit your business is a complex decision that depends on a combination of factors, including business performance, personal goals, market conditions, and timing. Seek guidance from financial advisors, business brokers, or mentors to make an informed decision that aligns with your objectives. Whether you choose to sell or exit, a well-planned transition can pave the way for a successful and fulfilling next chapter in your professional journey.

The world of business is full of complex transactions, and one crucial role that often goes under the radar is that of a business broker.

It's a pivotal time to take stock of the commercial real estate market in the state of Wisconsin.

Business Brokering Requires the right blend of unique skills.

What to Consider Before Becoming a Commercial Real Estate Agent Commercial real estate is not a fast money and minimal work hours type of job. The skills and knowledge needed for this profession’s demand is like no other. Starting a career in commercial real estate can be both rewarding and unpredictable. Income Your salary is based on commission. Like residential, a commercial agent retains around a 3% fee on all sales and leasing transactions. Depending on the brokerage firm that your work for, the firm will then receive 35 to 40% of that fee. Commercial real estate deals are time-consuming and complex. Some deals may take anywhere from six months to one year for the parties to settle on a price, funding has been secured, paperwork as been signs, close escrow and ownership has been made. Leasing transactions do take less time, but in some cases you will have to wait for the lessee to assume tenancy before receiving your commission. Your income will be received sporadically, and some deals you need to know that you might not see your commission for a while, if the deal ever closes. Qualities If you want to be a successful agent you need to be able to sell. Some of the best agents know who the power players are in the market. They know who their competition is, their potential clients, are continuously seeking out leads, are able to network and market themselves. Most of these agents are seen as confident, social, persistent and trustworthy. They work hard for their clients and move quick on opportunities. Agents who are able to make and maintain connections takes time. You will have long days/nights, work weekends and sometimes holidays. You will have to understand that the clients that you work for have busy schedules and you will have to work around them. Education Every state requires a license to sell commercial real estate. Most states will have you complete 30 to 180 hours of courses and have a passing score on the state exam. You are able to get your license online or through your local college. You will also have continuing education courses and you will have to renew your license every 2-4 years depending on which state your are located in. Do your research. Keep up to date on what the market trends. Read and follow commercial real estate publications and news outlets. Continuously research and stay active and connected with the community and state that you reside in. Your clients will be thoroughly impressed with the knowledge you obtain about the local market and when is best to sell or buy. They are typically already educated themselves but by you confirming what they already know will give you the upper hand. Also, being able to understand economics, finance and tax law will get you even further. Brokerage Research and narrow down the search on which brokerage best fits you. What is the company’s reputation locally and/or nationally as a real estate brokerage? Is the company well established in the local area? Does the brokerage specialize in a certain area of real estate? How many agents work out of the office? Do they serve a large market? Be sure to interview some of the agents and the owner of the brokerage to see what their goals are, what does training look like, are they members of MLS’s, what is the commission split. Find out what your obligations would be to the brokerage if you were employed. What technology support and marketing resources to you get. Want to know more about becoming a commercial real estate agent? Connect with us! 608.472.8240 | info@wicommercialgroup | wicommercialgroup.com

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