How to Prepare to Sell your Business
Are you preparing to sell your business or have plans to someday? If so, you need to consistently put yourself in the mindset of a potential buyer and look at your business from an outside perspective.
A buyer will want to know everything there is to know prior to purchasing your business, and will do this through a process called "due diligence." As the owner, it's important that you effectively start prepping for this process as early as possible to get the most amount of money for your business as possible come selling-time.
What is Due Diligence?
Due diligence is the process of collecting and examining all aspects of a business to assess risk. This includes:
Future growth potential
What's the Purpose of Due Diligence?
Simply put, it reduces exposure to risk. It ensures that the buyer is aware of all the details of a business before they purchase it.
How do I Prepare for Due Diligence as a Seller?
Put yourself in the shoes of the buyer. Begin your own due diligence process as early as possible to remove all barriers prior to the buyer even entering the picture. This way, you know you'll be properly prepared at any time, not negating the purchasing process. It's also important that you conduct a final "clean-up" before you enter the marketplace for selling.
How Should I Get Started?
Don't wait! The biggest mistake business owners make is waiting right up until they're ready to sell their business to start the due diligence process and they have nothing ready or in order. Start here with our FREE business assessment! It’s 22 questions, takes about 15 minutes to fill out, and produces a 12-page report that takes a broader view of your business into account (more than just the numbers).