Kosi Stobbs on 5 Things To Consider When Selling Your Business

by DAVIS BROWN PRC Agency

Kosi Stobbs is in the business of buying businesses. As a serial entrepreneur, real estate investing expert, and owner of multiple seven and eight figure companies, Stobbs knows what he’s talking about when it comes to business and financial freedom.

With the amount of success Kosi Stobbs has already had throughout his career, he’s passionate about sharing exactly how he did it. His book F$CK BROKE: LET’S GET RICH is a powerful guide to financial freedom, and offers the mindset shifts, how-to’s, and practical action plans of not only building wealth in North America, but also keeping it.

The sixteen-chapter manifesto puts Kosi Stobbs in a mentorship role he’s always thrived in. Through the book, readers learn about best business practices, limiting beliefs, managing finances, investing strategies, and so much more.

Kosi Stobbs has wealth from diverse and broad practices — but one that he’s practically perfected is buying businesses, and he has tips to share for those who are selling.

“Selling your business can be the result of a myriad of reasons,” Stobbs says. But he notes there are things that most entrepreneurs have in common when selling, And that begins with a mindset shift. “It starts with the long process of consideration they go through,” he explains. “Deciding the best time to sell, who to sell it to, and why the decision of selling is going to be a beneficial one long-term.”

And all of that can take a toll on the seller.

Whether you’re experiencing a lifestyle change, taking advantage of an economic upturn, or just realizing a pivot in passion or direction, selling your business can set off a few caveats. As someone always in the market to buy a business, Kosi Stobbs understands these more than most. “With strategic planning and prioritizing, and asking yourself a few major questions, entrepreneurs can sell their business with the confidence of doing the right thing, and the value of doing it at the right time,” he says.

When should you sell your business?

“The timing of when to sell your business is crucial.” Kosi Stobbs adds, “and that encompasses a lot of things.” He explains that the timing of selling doesn’t just relate to the market — it relates to what period of life you’re in, what stage your business is in, what stage you’re at in your professional career, and even your emotional preparedness of selling something that you’ve put blood, sweat, and tears into. So, unfortunately, the answer of when to sell your business isn’t going to be a linear process, and it isn’t going to be the same for everyone.

Why are you selling your business?

In a world so obsessed with the validation from others, it’s important to really understand why you’re selling your business. “You want to ask yourself if you’re selling the business for yourself or for someone else,” Stobbs explains. “Because if it’s for someone else, you should consider why exactly you’re selling.” In a few years after selling, are you going to look back and regret the decision you’ve made, and are you going to hold someone else accountable for it?

What is the value of your business when you decide to sell it?

Kosi Stobbs is confident that everyone should sell their business when it’s a high-value sale. So even when you’re growing and scaling, if your goal is to eventually sell, always be thinking about what point your business will be most valuable. He explains it simply — “when a buyer is looking for a business to purchase, they’re not just looking at the potential for growth within the business itself, they’re going to look at how efficient a transfer is going to be.”

Will your employees work well with a new owner once you sell your business?

Kosi Stobbs points out that “employees make up the heart of your business, so ensuring that those employees will be well taken care of when you leave is important.” At the early stages of your business, even when you have no desire to sell, make sure your employees are well trained and can carry on their responsibilities without you there to manage them. This is mainly done through thorough documentation of processes and operations. Not only will this benefit you long-term — it’ll ensure that your business can run smoothly without complications or misunderstandings down the line, with or without you.

Who are you selling your business to and what are their plans for it?

The most imperative question to ask yourself is who you’re selling your business to, and furthermore, what are their plans for it. Kosi Stobbs feels