When do I tell my staff that I want to sell my business?

Dear Aunty,

We have three retail outlets on the market and we have not shared this news with our staff at all. The first is about to sell, but there are no offers on the other two. How do we reassure the staff at the remaining two outlets and prevent the exodus?

Many thanks,
Nervous

Dear Nervous,

I know what you think. If you tell staff that you are selling the business, staff will slack off, lose interest, lose motivation and start to look for other jobs. But think about the other scenario. You don’t tell them. And then your hard working, loyal staff find out from the aunt of a friend who is a broker that your shops are on the market. They immediately begin to speculate that they are going to lose their jobs. And worse, you didn’t tell them.

I have always believed that you should tell your staff. Not at the tyre kicker stage when nothing has been decided. But certainly at the stage when it is on the market and staff can find out – or when an offer has been accepted.

The reason is that first, it is fair to let your staff know what is happening so they can make choices going forward about their own future. But second, you need your staff in the transition.

It is likely the new owner will want to keep them on.

Selling guru Tom McKaskill says that when he has spoken to entrepreneurs who have sold their businesses, those who kept information from employees regretted the decision. The employees felt betrayed and in some cases that had the result of undermining the sales process, with key employees leaving before the sale took place. Few entrepreneurs who did tell staff suffered adversely.

So here is what you should do. Be open about your plans. Offer staff a bonus for staying and assisting with the sale. Show staff respect and let them know that you will keep them fully informed through the process.

Good luck,
Your Aunty B

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