If you are about to sell your business, it is important that you get it right the first time. This is because it is not something many managers and owners will do more than once. Therefore, below is a list of do’s and don’ts for selling a business that when followed, should make the process much easier.
- First and foremost, plan ahead, start ideally two to three years before your hoped-for exit date. By giving yourself enough time and preparation, you will reduce the likelihood of errors in the process that could be damaging to the success of selling your business.
- Have clean accounts. If there are expenditures that are not absolutely necessary in the accounts take them out. It may mean paying a bit more to the taxman but the price a business sells for is related directly to its ability to make a profit.
- Make it look good, regardless of what type of business it is, make your premises/website as professional as you can. They do say that first impressions count, and this is the same for selling a business. You want to attract as much positive attention as possible, whether that be at your premises or on your website. So, ensure you take the necessary steps to present your business in the best possible light.
- Decide on the price you would like to get and the lowest price you are prepared to accept. By deciding in advance, you can seize the best opportunities when offers are made for your business. Poor planning on price will just overcomplicate and make the process lengthy.
- Once it is on the market take your foot off the gas. A decline in sales will scare off potential buyers. You need to show the true potential of your business to entice possible buyers. This also shows potential buyers the strengths of the business and just how valuable it would be to buy.
- Cut or run-down staff numbers, it is hard to sell a business where there is only one person who has all the knowledge and skills needed to run the business. By cutting down staff, your business will only suffer and this will become apparent to potential buyers when they see how the business is performing.
- Potential buyers will not see the business the way you do and you may get remarks or offers that you think are insulting, please don’t get upset, whilst you may well have invested a great deal of your life in the business please try to leave your feelings at home.
If you are thinking about selling or preparing your company for sale Business Partnership will help as little or as much as you want them to. We are all experienced professionals virtually all having run our own businesses and we enjoy what we do. Please call me on 01276 919650 if you want to chat.