Determine the value of the business
The first thing to do is to hire business evaluators or find a broker to help estimate your business. He or she will tell you whether changes are needed to get the maximum offer possible. After getting the appraisal, you are to ask several questions to understand the process and be justified with the stated maximum price. By understanding how businesses are evaluated, you can easily make changes that can enable successful sales.
There is a need to have precise, accurate, and clean financials. Remember that investors are interested in a strong, healthy business that generates considerable profits. When you prepare your business for sale, you need to have accurate figures. Therefore, you should notify your account before meeting with the business broker.
Document your procedures and systems
A purchaser requires a lot of security. They want a guarantee that the business can thrive without them being around. Therefore, you need to document all your procedures and systems in a precise and clear manner. This will be of help during the training process. Moreover, it reduces the time required to handover after your business has settled down.
Clean the premises
You should ensure that the premises of your organization are tidy and clean. Ensure you remove the old stock and sell redundant equipment. A cluttered premise will make your business appear untidy. Also, it may seem to have got to capacity without any room for growth. You should ensure all the safety guidelines are met.
Prepare tax information
You need to know tax implications as a result of selling a business. As a business owner, you are obliged to know the value of your business. It has to be a fair market.
You should keep stock at consistent levels to ensure the business runs smoothly. Having an overstocked business can put a lot of pressure on the working capital and cash flow. This can have a negative impact when you want to sell the business. Remember that even if you do not have cash flow issues, the new buyer may not have access to funds as you do.
Document your customer base
The customer base ought to be broad as much as possible. If you are relying on a single customer, then your business is at great risk. If you have supply agreements, ensure they are documented.