Selling A Business
How Can You Sell Your Creative Business in South Florida?
Starting a creative business is a dream for many people. You might have a particular skill you’re very good at that you think others could benefit from if you shared it with them. Maybe you’re a writer, an artist or a photographer.
Unlike some other industries, many creative businesses survive and thrive based solely on the skillset of the particular person (or people) who started the business. Some creative businesses begin as a solo entity and remain that way for their entire existence. Others grow with support staff that surrounds the creative person. Still others blossom into a much bigger operation that includes hiring other creative people.
Like any industry, there will come a time when the owner of a creative business will want to depart from the working life, or they may decide it’s time to pursue other opportunities. Unlike other industries, though, selling a creative business may prove more challenging (or at least require different steps) because of the nature of what the business does and the importance of the creative mind(s) who run it.
If you’re looking to sell a creative business in South Florida, here are some questions to keep in mind to make the sale go more smoothly, and protect yourself in the long run.
What’s in a Name?
A lot of creative businesses are named after the owner, for obvious reasons. Maybe you’ve named your business Michelle Davis Photography or Brad Johnson Creative Marketing. This probably served you well when you were starting up and running the business, since it branded you at the same time you were branding the business.
When you go to sell this business, though, your name may not be the appropriate title for the business. One thing you may consider in the lead-up to selling your creative business is re-branding to a more generic name. So, instead of Michelle Davis Photography, you could re-name it Personal Touch Photography, for example.
Re-branding this way will give your business a more generic feel, which means it could be longer-lasting for when someone else owns it.
Are You the Only One with the Skills?
In order for a business to sell, buyers must see the potential in it long after you’re gone. This can prove to be challenging if you’re the only creative force behind your business.
If, for example, you’re the only photographer on staff, what happens to the business when you’re gone? The answer, most of the time, is the business ends.
One way to prevent that from happening is to hire and train another creative mind – an apprentice, if you will – who can gain similar skills to you and who is interested in being in the industry for a long time. That way, you won’t be the only person on staff who actually produces anything that results in revenue.
What Are Your Processes?
Buyers want to see that you have good, solid processes in place. They will not only want to see your work itself, but also how you acquire new clients and how you handle things such as collections, accounting, organizing, etc.
Oftentimes, the beauty of running a creative business is you have the freedom to do things how you want to do them. When you go to sell your business, though, this could be a hinderance.
That’s why you want to make sure you set up clear, concise and easily understood processes and have them in place long before you go to sell your business. This will allow potential buyers to see how easy it would be for them to step in and run the business smoothly once you leave.
What Are You Doing After the Sale?
If you plan on working following the sale of your business, one important thing you’ll need to consider is a non-compete clause that will probably be a part of the deal. The new owner of your business won’t want you cashing in and then opening a new business in the same industry to take away their clients.
Working in the same industry after selling can be a tricky situation for creative people. If you’re a photographer, for example, will the buyer insist that you sign a non-compete clause that states you can’t profit from selling photography at all, or at least in a certain region? Or maybe you can’t sell family portraits from a studio anymore, but you can sell nature photography through an online store.
The devil is in the details, as the saying goes, so make sure you know all the details of the sale and structure it so it’s not too restrictive on you if you wish to keep working.
Creative business owners have a few extra things to keep in mind before and after they sell their business. That’s why it’s important to examine all the angles and set yourself up for success when you’re going to sell.
Sunbelt Business Brokers of West Palm Beach can help you prepare to sell your creative business in South Florida, guiding you from listing to closing. If you’re considering selling your business, get in touch with us today for a confidential, no obligation conversation.
