Imagine having a network of trusted experts you can go to when you have questions or need business advice. That’s what a board of directors, mentors or advisors can do for you.
No one is an expert on everything, which is why it is so important to have a circle of people to help your business through challenges, and to provide encouragement and support.
Here are some resources available to help you find and work with a mentor or advisor for your business:
- SCORE - SCORE is a free and confidential counseling and mentoring service for small business owners nationwide, sponsored by the SBA. SCORE has a network of business executives, leaders, and volunteers that you can connect with for personalized advice and support.
- Small Business Development Centers- SBDCs provide free one-on-one business counseling services and advice to small business owners and entrepreneurs. Services include financial counseling, marketing advice, management guidance, and assistance with putting together business plans.
You can familiarize yourself with the tools available in the Resource Navigator.
Exit strategy
Do you have a business exit strategy? Developing an exit strategy or succession plan is essential in smoothly transitioning your business and ensuring you maximize your opportunity to profit from the sale. SCORE offers tips on when to begin planning an exit and how to complete a valuation of your business. The SBA also offers great information on creating a sales agreement.
Closing your business involves a number of steps including financial ramifications, tax issues and relationships with employees, customers and suppliers.
Process of an Exit:
1. Determine Your Reason For Selling: A buyer will ask this immediately.
2. Timing: Timing can be everything from finding a buyer to maximizing your sale price
3. Valuation: Valuing your business for sale is both an art and a science. There are various methods for determining a value. Like anything else, you’ll also need to take into account what demand there is for your business, what you need to get out of it, and what a potential buyer is willing to offer.
4. Third Party Assistance: Business brokers and websites are two means for hiring an agent to work on your behalf to find a buyer. The alternative is to sell the business yourself. As with anything, there are pros and cons to each.
5. Document Prep: Buyers will want to see financial documents related to the business. They may want to talk to key clients or employees as well. They will want to do as much due diligence as possible, so be prepared.
6. Marketing Your Business: The broader you can market your business, the more demand, and hopefully increased pricing, you can extract from the sale. Create lists of potential buyers and start marketing to them!
Regardless of how you choose to close your business, you will have to complete the required steps while being in Puerto Rico.
The law firm Torruella offers information on how to close a corporation.