1. Stop Running the Business by yourself
Many buyers have been accustomed to think that a business cannot function without the original owner. Many potential buyers worry that once the current owner leaves, the business opportunity will decrease. This is mainly attributed to the relationships business owner would have built with his clients. In preparing your Business For Sale, it is a good idea to reduce the amount of time spent running the operations of the business from day to day. Potential buyers will find it comforting to buy a business which is not dependent heavily on the business owner for its day to day operations.
2. Hire Experts to run your Business
Buyers like stability and dislike risk. One way to reduce the perceived risk of acquiring your business is to hire good managers and staff. A profitable business that comes with the well-trained managers who understand the business and are willing to continue with the business will make many buyers have an interest in buying it.
3. Put in place Business Systems to measure metrics
During the preparation of sale of your business, your goal should be having all your business activities documented and work in a stipulated system. All business practices must be well defined, and each member of your organization must have a clear role with a specification work well understood. Use your preparation period to build systems that explain and document how each process works and all employees should be well versed in how these systems work. When you put all your business systems in place, it will expand your business opportunity.
4. Take stock of Legal Affairs
It is vital to resolve any legal disputes or issues that may affect the sale of your business because any self-respecting buyer that is looking for long-term Business Opportunity will conduct complete due diligence if they are serious about buying your business. Many deals collapse because of legal problems or disputes that the seller failed to solve or disclose. If you can resolve these issues before negotiations and due diligence, you have paved the way for a successful sale. Issues such as the leases of property and equipment, outstanding payments or settlements and other potential liabilities must be addressed before the negotiation period as these matters are known to collapse offers.
5. Develop a Business Plan / Information Memorandum
Since you are trying to sell your business, it is important that you have future business plan and info memo that will attract potential buyers and inform them about the potential of the business. Most buyers seek to buy a business because they believe they can do a better job than the current business level.
6. Basic Housekeeping
It is important to pay attention to your facilities and ensure that all equipment and the stock is updated, that your office is clean and professional, and all unsold inventory or out of date moves forward. You should also use this time to start looking at your company accounts. Many small businesses are prepared to minimize taxes, but this accounting method leads to lower valuations as many deals are made by applying a multiple of annual operating profits.
