Selling a business can be a challenging process. However, like many challenges in life, business owners who take the time to properly prepare will fare much better than those that jump right in.
Here are some tips for selling your business:
Lesson 1: Your business’ value is a reflection of all your hard work, therefore it’s something owners should be working on from the day they start their business.
Lesson 2: Small business owners should create, collect and review their profit and loss statements (covering the past two to three years), current balance sheet, cash flow statement, business tax returns (for the past two to three years) and any additional documentation to substantiate their financial standing.
Lesson 3: There are many reasons why business owners want to sell their business and, for some, getting top dollar might be their only priority. But for others, letting go might also mean ensuring the business and its employees are in good, capable hands.
Lesson 4: While small business owners should try their best to anticipate likely contingencies, hiccups are almost always inevitable in the sales process.