Preparation For Business Sale

The most important thing to do is look at your business through the eyes of the buyer.The buyer wants to see a stable and promising business. If you can not convince him that your se, you do not sell the business.
1. Make an analysis of strengths, weaknesses, opportunities and threats. Do not do it themselves. Do not do it for one hour. Ask your employees, friends, drag a drawing at the time that would take into account all sides and draw up an objective picture. The best solution – hire a professional.
2. Write down every aspect of your business which may seem to an unprejudiced person, problematic. It can be: the presence of several key clients, leases, dependence on key personnel, etc.
3. Develop a plan to address these problems. And start to act on the plan. In the short run, this will eliminate some problems, but the buyer will show how (and positively) solved business problems.
4.Privedite documentation in order. If you use multiple accounting systems (for himself, for the state, etc.), they must all be in order. Accounting system, showing the real situation in the business, must clearly and accurately to give an answer customer questions about the financial situation of the purchased business.
5. Evaluate business processes workflow. If everything happens in your head (your or your employees), the new man will long to understand how business actually works.Look at where and what you can automate, optimize. This will be your short-term benefits and, ultimately, make business more attractive to buyers.
You may ask why I do it all if I sell the business. Then that would be faster and more expensive to sell. You can not do – but how much time you will find a buyer for the business full of hidden problems, vague figures, obscure processes. Eventually found only when and for how much you sell?

Save time and owl-time buyers – describe the business on paper, make a presentation, which may include:
An overview of business on the same page, giving answers to the questions: who, what, where incomes. It is desirable not just dry data and ad text (but sharp kinks, so it is not necessary, it is the beginning of the sales process).
Company history
Describe the main stages in the development of the company since its foundation.You should pay attention to how the company grew, the problems it faced and how they successfully overcame. Describe the important strategic decisions and their consequences. If there were any important events as a strategic partner, the beginning of production (sales) of a new product, etc. necessarily shall describe in detail.
The reason for selling
The buyer will see the reasons for the sale of the hidden business problems.Whatever the reason you have not named, it would still be in doubt. A more optimal state: selling is because the seller has the opportunity to realize the funds received from the sale of more profitable (perhaps more risky) business. Everything is simple and clear.
Goods (services)
Describe the full list of services (products) produced by your business. The description should be clear and not to provoke further questions, but so as to avoid excessive detail.
Marketing and Advertising
Imagine all the marketing and promotional activities that you do. If you believe that there is room to grow, then write that the future owner has the opportunity to increase your advertising budget and thereby “increase … to achieve …”
List of key employees (not necessarily with the names) by specifying the post – experience – how many years in the company – a description of duties (in brief) – Wages.
Make a list of what the company has obtained a good comparison with competitors
Every company has weaknesses. Weaknesses have been and will be. However, they should not be influencing the development. They should present a realistic picture of the business. Especially since weaknesses in one kind of business is not always so in another. Possible solution to such problems would cause more negative effects if it (the problem) does not touch at all. Ie for each of the weaker party must be a rational explanation for why it is there, why of it has still not got rid of.
Make a brief overview of the competition, pointing out which, the approximate market share, their strengths and weaknesses. Highlight your benefits to them and to you.
Opportunities for growth
Tell us what you would do, if not sold – Development Plan. You can also indicate that the significant financial investment, we can do “something something” that would lead to “to something.” It is important that these were real opportunities for your business, and fantasy on the theme “would be me …”
Financial performance (3-5 years history)
In this presentation, business details are not necessary, it is necessary to specify: revenue, cost, expenses, depreciation, interest, taxes, net income. Make balances at 1 of every year.
The details of your business may vary depending on the species itself and the business requirements of customers. But making this kind of work, you save yourself from numerous repetitions of the same will save a lot of time and show the customer not only the seriousness of its intentions and, but also an approach to business.Promise the buyer to stay for some time to run the company – it will play a positive role as a buyer, saying that you do not hide anything, and on the company itself.