Checklist for Selling & Operating your Business
Checklist for selling & operating your business
- Be confident- A good rule for most any endeavor in business & life. You are going to make the case to a buyer why your business is the best thing since “sliced bread” or at least a great investment.
- Be credible: This is essential! If the credibility of seller is lost or called into question, it becomes difficult, if not impossible, to regain credibility.
- Have a selling strategy: Who’s your buyer? How do you reach them? How do you introduce them to the opportunity? What’s your time frame? Are you pricing for maximum return or a “quick sale”? Answering these questions are important.
- Plan your marketing: Do you have the time and expertise to do this? If not consult a professional.
- Seek professional advice: As described above, if marketing & selling businesses is not part of your skill set, hire a professional.
- Pre-qualify your business for lending: Is your bank a preferred SBA lender? If not, find a bank that is and ask them to prequalify your business for SBA or conventional bank lending. This makes a powerful statement in your marketing to be able to say that your business is, “pre-qualified for SBA/bank financing for qualified buyers”.
- Address internal issues: There is a saying in the business intermediary community that “there are no perfect businesses & no perfect buyers”, but you still want to do everything you can to present your business & employees in the best possible light.
- Prepare for buyer’s due diligence: It is a good idea to have a professional (accountant) do a “pre-sale” due diligence project to uncover any issues that can be fixed.
- Anticipate buyer’s questions: Put yourself in the buyer’s place. What questions would you ask? Ask a professional to coach you.
- Use professional intermediary to market and negotiate for the highest value: A good business intermediary will often pay for themselves, by getting a better and quicker deal than a seller can. To reiterate my new favorite phrase, “if you think a professional is expensive, try an amateur”!