YouTube Video – https://youtu.be/Seg-CARJgII At some point in your business life as an owner you will think about selling your business. And when that time does come, you need to have a plan in the works. Here’s what to focus on and what to build upon.
- Create a niche for your business, if there are barriers to entry, you will get a premium for your business.
- Make sure your financials are clean and does not contain non-business expenses.
- Improve your cash flow as much as possible to show as much net income as possible.
- Evaluate your assets and dispose of assets or inventory that is not producing cash flow.
- Put together a team of managers who handle the day to day responsibilities of running the business with little oversight from you.
- Document everything; your processes, position descriptions, current and future plans for the business.
- Relationship building – whether it’s with clients or vendors or employees. Ensure you as a business are widely known in your field.
- Minimize as much risk as possible – diversify your clients and suppliers, ensure that your employees are motivated and have employment contracts, and the company is not facing any legal challenges.
This is a very high-level overview of items to keep in mind while you prepare your business for sale. Of course all of these items goes in much more detail that what we outlined here. We can send you a more detailed list, please email us at [email protected]