Things You Should Do ... And Things You Shouldn't Do When Selling Your Business: Jeff Slaton

What you do or don’t do cannot only affect the price you get for your business; the wrong action can torpedo the entire deal. Try to put yourself in the shoes of a prospective buyer of your business. What can you do to make it more more saleable?
By: Jeff Slaton
 
July 21, 2009 - PRLog -- Things You Should Do …
And Things You Shouldn’t Do
Before You List Your Business for Sale

What you do or don’t do cannot only affect the price you get for your business; the wrong action can torpedo the entire deal. Try to put yourself in the shoes of a prospective buyer of your business. Think about what you can do to make it more attractive or more saleable.

Prepare your business for sale before placing it on the market.

Things You Should Do

= Get your financial records up-to-date. You will need at least 3 years of complete financials including: Tax returns, Profit and Loss Statements, Balance Sheets. The larger the company the more details you will be asked to provide. Prepare a brief history and essential data sheet on the company; something that will excite a prospective buyer.

􀂾 Develop and implement a clear marketing plan

􀂾 Keep normal operating hours.

􀂾 Repair signs, replace outside lights, etc. You don’t want your business to look as if it has been neglected.

􀂾 Remove items that are not included in the sale or unnecessary items, especially if inoperative.

􀂾 Repair non-operating equipment or remove it, if you are not using it.

􀂾 Tidy-up the outside premises.

􀂾 Spruce-up the inside of the business – a little paint goes a long way in improving the looks.

􀂾 Be available. It is important that when an ad is run in the newspaper that someone is available to answer the phone. When potential buyers see the ad and are interested, they need someone to pick up the phone. In this day and age of cell phones and PDA’s, buyers expect to get a hold of someone at virtually any time or place. If you use a broker, they will take care of this for you.

􀂾 Scheduling Appointments. Buyers will typically want to meet at the place of business so they can take a tour and get a feel for the place. Obviously, common sense dictates that you don’t schedule a meeting during a lunch rush at a deli shop. There will also be times when sellers want to meet at a neutral location or after-hours if extremely sensitive to employees. Although meetings will typically be held at the seller’s convenience, the buyer WILL need to tour the business and get a feel for it at some point in time.

Things You Shouldn’t Do

􀂙 Avoid adding any more overhead to your business such as new leases or debt.

􀂙 Do not let your accounts receivable get out of hand. Make sure you monitor them carefully and do everything you can to clear up any outstanding issues.

􀂙 Do not change the fundamental way you account for income and expenses.

􀂙 Don’t succumb to the tendency to let down or close up shop earlier than usual when you put your business up for sale. Prospective buyers need to see your business at its best.

􀂙 Don’t let your inventory decline. If you let your inventory slide, your business will look neglected. It is better to maintain it at a constant level. If anything, increase it slightly so your business will look busy.

􀂙 Don’t keep any skeletons in the closet (OSHA or EPA problems, etc.)

Jeff Slaton is with http://www.NetWorthBusinessBrokers.com belongs to one of the nation’s largest networks of business consultants. Jeff has been working closely with business owners for more than 10 years, ensuring their sales, marketing, financial, and exit objectives are successfully executed. NetWorth Business Brokers delivers face-to-face business consulting to small business owners seeking a future exit from their companies. He can be reached at Broker@NetWorthBB.com or 612-419-2905 for more information.

The current recession brings about a unique opportunity to sell your business for top dollar. With over 10 years experience in more than 200 industries, NetWorth Business Brokers Management has weathered the challenges of our economy’s peaks and valleys. We continue to net positive results for Minnesota business owners, with a high level of customer satisfaction. Contact Jeff today to find out why now may be best time to sell.


Serving Minnesota, Wisconsin Business Buyers Sellers

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Jeff Slaton is with http://www.NetWorthBusinessBrokers.com belongs to one of the nation’s largest networks of business consultants. Jeff has been working closely with business owners for more than 10 years, ensuring their sales, marketing, financial, and exit objectives are successfully executed. NetWorth Business Brokers delivers face-to-face business consulting to small business owners seeking a future exit from their companies. He can be reached at Broker@NetWorthBB.com or 612-419-2905 for more information.
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