Are You Selling A Business? - Make Sure that You and Your Business are Ready

Having an exit strategy right from the beginning is a good idea but not everyone begins with the end in mind.  Most businesses focus on growth and most often, the business’ sustainability.   This is because for some, selling a business is would also mean failure in some aspect.  Nowadays however, selling a business is  in itself a strategy for financial and personal growth. This most especially true for people who are start-up or idea oriented and are less inclined to manage or oversee daily operations.

                Selling a business is also not something you decide upon overnight and decide to put the business up for sale the next day.   Business brokers would say that selling a business successfully takes at least a twelve month long preparation process.  This is because you will need to have at least a year of successful operations that reflect on your business and financial records.  These records should also be verifiable along with the any other document you are to provide your business broker with.

So here are a few insights on the preparations you need to make in selling a business. It is most ideal to start preparing on or before the beginning of a fiscal year.

·         Be a banked business. There are businesses who do not deposit all their cash sales in the bank.  If you decide to eventually make graceful exit by selling, it is best that the business’ profitable run is recorded both by your in-house books and the bank.  This ensures that the true value is well documented.  This makes it easier for you and your business broker to sell at a profitable outcome.

·         Standardize and document your processes – standardization helps daily operations to run smoothly.  Operating manuals should be available no matter how small the business is.  Buyers would be more willing to pay a higher price for businesses that are run well and that the transition between owners will not jeopardize the end products or the services delivered.  It also helps keep regular customers because they know that they will get the same service even if owners have changed.

·         Create a long term business plan if possible – an existing long term business plan gives buyers an insight into a brighter future for them.  Decision making on the part of the buyer is made easier too.

·         Consult with the experts in selling a business – this would mean you should really talk to your business broker regarding your concerns.  Their advice before you “jump ship” is valuable and would mean a better business sales outcome.