Preparing a Business for Sale
Even if a business owner has no intentions of selling the business in the near future, a smart business owner will start preparing for the sale of the business from day one. Structuring a business so that a new business owner could step in at anytime and continue operations without any hiccups is a huge asset. This will maximize interest when you do advertise the business for sale maximizing profits. Advertising your business for sale at its peak is recommended. With a sales and profit history record for at least 12 months with each month matching or outperforming the last will see your business for sale listing generate genuine quality leads, speeding up the sale process while increasing the business value.
The bigger your business or company, the more likely it is that you are anal when it comes to keeping all business account information up to date. A smaller business is usually not as organized as the major corporate companies. So it is essential that all business owners no matter how big your company is, keeps all book work up to date allowing potential buyers to see exactly how your operations are conducted. Arrange your accountant to prepare profit and loss statements in additions to your own book work. Revise all of your business book work and refresh your memory, preparing you for any questions the potential buyer has in relation to expenses and purchases. Being able to answer all questions they have without hesitation show your professionalism and knowledge of your own business.Most businesses will have a percentage of their business sales unrecorded because they are cash sales. No matter how big or small you should always disclose this information to a buyer, as it may justify the price you are asking for the business.
Implementing a sales or management team into the business from day one will look more inviting to a potential buyer. Demonstrating that all business sales came from a team environment and knowing that the success of the business did not come from one person (the owner) is an important factor. A sales or management team will prove that the success of the business will continue after the business transaction. If the potential buyer knows that the businesses success came from the existing owner's rapport with customers that was built over the years, his technical skills or general knowledge of the business may deter him from the acquisition. Establish the business so it is not critical that you are essential to the success of the business.
Offering financing is a good way to achieve maximum profit for the sale of the business. Not only does it give the buyer an additional option for financing the acquisition, it also shows the buyer your confidence in the businesses continued success once you have sold the business.
About the Author
Australian Business for Sale Classifieds. For more businesses for sale in Australia or business brokers visit: http://www.business-trader.com.au