It’s one of the hardest things to do and rarely gets done at the right time. If I had a dime for every person that said “only if I sold my business back when”. It’s rare to know the right time and harder to let go when things are good. Hopefully with the right tools you can find the make the most out of the business and the sell. In fact being prepared to sell will help your business run more efficiently.
I read a stat once that 20% of all business owners are “nearly ready”. While most others are not even considering it.
Here is 5 tips to getting your business ready to sell even if you have no plans to do so.
1. Know the worth of your company.
Most companies are worth equal to earnings before interest, taxes, depreciation, and amortization. To increase this number in your favor you will need to have special conditions. Some special conditions raise value is to have low overhead and risk. To have a straight forward job that is easy to do and the tools and people needed to it. Think of a car that needs work or a car in perfect shape. The more perfect the car looks and runs the more value it has. Not only is the nicer shape car worth more but it will sell faster. There is companies that can get you a formal value for a reasonable price. You don’t have to show it to the buyer but it’s good to know.
2. Keep you long term staff.
Nothing helps the transition of a company than the managers. That is why when selling your company it’s important to have long term employees that know everything there is to know about what the business does. This also will raise value and help entice the sale.
3. Pay for a professional third party audit.
Most financial statements are as valuable as the paper they are written on. If you have a third party respectable audit it will speak volumes about your honesty and commitment for a smooth honest sale.
4. Document your business path.
Start a log events for your business. Did you move did you hire someone. Keeping a log of all the events will help the business sell faster and build trust with the new buyer.
Remember being ready to sell, can only help your business run better and when the time is right you can make a quick move to get the most money possible.