Operating a business for the benefit of the business owner – today….. is different than operating a business that is building value and will one day be sold for a nice profit.
Do you want to be able to sell your business when you no longer want to own it?
Here’s what you need to start doing NOW!!
- Keep your books accurately. A buyer will pay you a multiple of the earnings you can PROVE. You will not be paid for earnings that you can’t prove.
- Make sure your employees are paid in accordance with all federal and local laws.
- Get rid of any lawsuits that may be haunting you.
- Make certain your insurance policies are up to date.
- Make sure your business name is properly registered and protected with local agencies.
- Pull a Security interest report and get rid of any old UCC-1 filings (remember the copier you leased, then bought, 5 years ago? The UCC-1 was probably never released by the secured party (a UCC-3 form will release the lien).
- Limit the number of family members working in the business.
- Fully document, in writing, all important systems and processes in the business. This is difficult and time consuming but will help you get a much higher price when you sell the business.
- Get rid of unused assets – excess inventory, old equipment, etc.
- Most importantly – You may not know when you’ll need to sell the business so do the above NOW, so you can respond to any opportunities that might come your way.
The best advice…”Run your business like it’s always for sale, because it is.”