How To Prepare Your Business To Sell
- September 15, 2020
- Posted by: admin
- Category: Business Sales
If this year has taught us anything it is that our time is precious and that we don’t have control over as much as we thought we did.
I am sure you have read about and talked about the time given back to us from not commuting and the various businesses that have had to pivot or shut their doors due to COVID-19. There are lots of reasons people are now deciding to sell their businesses, however you found yourself here today, I have some tips on how best to sell your business or at least prepare to sell.
Please feel free to share this with anyone who might need a little direction throughout what is a very lengthy, stressful process!
- Spring Clean
It is time to get rid of unused machinery, stock and other valuable items. Any clutter you have physical and virtual clean it up ready for sale. Also take this time to fix anything that is broken and ensure everything is well maintained.
- Put some things on the back burner
If you had some big long term projects, put these on hold for now. Make summaries of where they are all at to discuss with new potential owners. But they may choose to not continue with some projects, or any of them. So best to save efforts and funds.
- Create a Business Plan
If you haven’t got one, don’t worry you aren’t alone. But now is the time to make one. Chances are you have all the information and plans in your head you just need to put it down in print.
- Reduce the risks to new owners
You want to make sure you aren’t giving new prospective owners too many items in the CONS column before you get out of the gate. So be sure to lock in supplier contracts, make sure you are up to date with health and safety and relevant compliance. Basically write a list of anything they might see as a negative/con/red flag and sort it out before it becomes one (if you can).
- Let the experts make it easy
Make sure you have let all your important people know what you are planning to do; lawyers and accountants as an example so they can advise any next steps and so they are prepared to help you when the time comes. If you think your business could do with a hand getting things in tip-top shape before selling, consider talking to LEVITATE.
- Figure out what your business is worth
This part is a hard one, because really at the end of the day your business much like a home is only worth what someone will pay for it. This is an area where a Business Analyst will be able to help you come up with your number. You may need to look closely at your intellectual property to help boost your business’ worth – logo, trademark, packaging designs, copyright imagery, customer database etc.
- Get all of your information together in one place
If you are new to selling a business, just think about all the information and steps you need to go through for a house which is a piece of land and a physical structure. Then look at your business with all its moving parts: staff, finances, equipment, contracts, sales projections and so on and you get an idea of HOW MUCH information people are going to need down the road. Once again getting the experts to help you, will save you time, stress and money in the long run. Levitate has a groundbreaking Virtual Data Room Management Service which they help you create for your business with all the information buyers will need but securing confidential information and keeping the control in your hands.
If you/your client is selling a business please feel free to reach out for a no obligation chat to see how we can help you through the process to help you close the sale quicker.
Drop me a line at email@example.com or call me on 0458 601 321 to have a chat today. Alternatively, feel free to explore our website and see what benefits other clients have experienced from utilizing our services.