Preparing Your Business To Sell

10 Simple Steps to create higher value and a smoother sales process of your business.

Steps to Preparing Your Business for Sale


These are the most common steps to prepare your Business for sale:


Step 1:  Your initial decision to sell your business, reflecting your true and honest motivation.


Step 2: Avoid discussing your plan to sell the business with even your most trusted employees.

10 Simple Steps to create higher value and a smoother sales process of your business.

Steps to Preparing Your Business for Sale


These are the most common steps to prepare your Business for sale:


Step 1:  Your initial decision to sell your business, reflecting your true and honest motivation.


Step 2: Avoid discussing your plan to sell the business with even your most trusted employees.

Step 3: Organize your financial records, as every buyer will want to review your profit and loss statements. Make certain these records are as up to date as possible. Be prepared with a copy of your property lease and any other financial documents, such as your inventory, your accounts payable, and your accounts receivable.



Step 4: De-personalize your business. This may mean removing your name from menu items such as “Mary’s Meat Loaf” or “Harry’s Hot Dogs”.

When sellers are so involved with the business, a buyer’s concern is that business may go when the seller does. This step may even include removing many personal items from business elements.


Step 5: Remove items (clutter and junk) that are no longer needed or used in the business. (Buyers are impressed with clean and clutter-free businesses). We have seen that organized business tend to sell faster and for higher amounts than businesses that are disorganized and in disarray.


Step 6: Contact a professional Business Broker who can provide a valuation for your business. The Business Broker will offer a Market Price Analysis based upon a realistic price to help you determine if this is the right time to sell your business.


Step 7: Make certain that the Business Broker has sufficient information and documentation when marketing your business to buyers so that he or she may adequately provide details.

Step 8: Plan to be available to meet with buyers brought to you by your Business Broker and be prepared for difficult questions from qualified buyers.


Step 9: Plan to work as a team with your Business Broker to position your business to its best possible advantage.


Step 10: The most important step. Be honest about your business. Once a buyer discovers that something is not as you described, the buyer will worry about the possibility of other statements not being true and will move on to the next business.

Step 3: Organize your financial records, as every buyer will want to review your profit and loss statements. Make certain these records are as up to date as possible. Be prepared with a copy of your property lease and any other financial documents, such as your inventory, your accounts payable, and your accounts receivable.



Step 4: De-personalize your business. This may mean removing your name from menu items such as “Mary’s Meat Loaf” or “Harry’s Hot Dogs”.

When sellers are so involved with the business, a buyer’s concern is that business may go when the seller does. This step may even include removing many personal items from business elements.


Step 5: Remove items (clutter and junk) that are no longer needed or used in the business. (Buyers are impressed with clean and clutter-free businesses). We have seen that organized business tend to sell faster and for higher amounts than businesses that are disorganized and in disarray.


Step 6: Contact a professional Business Broker who can provide a valuation for your business. The Business Broker will offer a Market Price Analysis based upon a realistic price to help you determine if this is the right time to sell your business.


Step 7: Make certain that the Business Broker has sufficient information and documentation when marketing your business to buyers so that he or she may adequately provide details.

Step 8: Plan to be available to meet with buyers brought to you by your Business Broker and be prepared for difficult questions from qualified buyers.


Step 9: Plan to work as a team with your Business Broker to position your business to its best possible advantage.


Step 10: The most important step. Be honest about your business. Once a buyer discovers that something is not as you described, the buyer will worry about the possibility of other statements not being true and will move on to the next business.