In 2018, people bought and sold over 10,000 small businesses. For many, this is the American dream: growing your business from nothing into a successful enterprise, then selling it to move to bigger and better things (or retirement).
However, if you don’t know how to sell a business, you can end up getting less money than you deserve. In some cases, you may be unable to sell it at all. So what do you need to keep in mind?
Keep reading to learn about the selling a business checklist you can follow to make the process as painless as possible.
Have a Reason to Sell
The first thing that many buyers will want to know is why you’re looking to sell your business. This means that you’ll need to have an answer prepared.
You should have an answer that’s both convincing and compelling. It should help encourage buyers into committing to the sale, as opposed to causing them to run for the hills. Retirement and a loss of passion are two common, safe answers to give.
Ensure That Your Accounting Books Are Professional
When selling your business, you’ll want to make sure that you have a professional set of records to present to the next owner. Aside from balancing everything accurately, make sure to also be professional about it.
Hiring an accountant is the best way to make sure that everything is easy to read and understand.
Organize All of the Legal Paperwork
Once a buyer is interested in your business, they’ll start to review all of the legal documents that pertain to it. This can include everything from employee contracts, to vendor agreements.
Take the time to look through these documents well in advance. You’ll have the time to fix any problems and find any missing papers, if necessary.
Don’t Underestimate the Value of a Good First Impression
When potential buyers visit your business for the first time, what are they going to walk in on? An organized ecosystem of productivity and efficiency, or a muddled mess of chaos? If the latter, spend some time getting things ready.
Aside from “dressing up” your business, you can also look into updating outdated systems and eliminating bloated inventories.
Keep Your Business Strong Until the End
Remember that you own your business until the moment you sign it away. While it’s important to pay attention to all of these prior points, make sure that you don’t let your business performance collapse towards the end.
If in the end, you need help sealing the deal, don’t be afraid to seek help. For help selling your business and ensuring that you get the most out of the transaction, see more here.
Make the Process Easier With This Selling a Business Checklist
Regardless of why you’re looking to sell your business, you don’t want to get bogged down in the transition process. If you’re wondering how to sell a business quickly, following this selling a business checklist should help you get through everything as fast as possible.
Do you now have a better understanding of how to sell a business? If you do, make sure to check out some of our other articles for more guides and tips.