Many Entrepreneurs start a business because they have a passion for something. For that reason, a lot of Entrepreneurs never even think about selling their business. It’s fine not to sell it, but if there is ever a point when selling it is an option, it is best to be ready. Is your business “fit to be sold?” Having business that is ready to be sold is having your business in the best position it can be in; this is beneficial whether you sell it or not. The goal is not to scramble to get things in order. There are many things that need to be in place to make your business presentable for sale. Here are two key factors:
- Systematic Operations Plan. To grow and eventually sell your business, an Entrepreneur should be sure to have operations that allow the business to run without them as the business owner. Most buyers do not want to buy a business heavily dependent on one person. Here’s a question: if you leave for a week, will your business still thrive or will it shut down? If the business cannot run without you, then your operations plan needs to be changed. You updated plan should include systems, automations, procedures, protocols, and a team; all of which allows the business to grow and operate without you.
- Financial Statements and Tax Returns. Many business owners are trying to run from the IRS and not show the true value of what they have made for the year. This is actually the opposite of what needs to happen to make your company attractive to buyers. Make sure you start implementing healthy habits which include showing all the profits in your business with your financial statements and tax returns. No one wants to buy a business that is not making any money. Get out of the habit of running from Uncle Sam, so that Mr. Sam will want to buy your business.
These two key factors are crucial in not only making your business attractive to future buyers, but also important in day-to-day good business practices. Good practices allow for proper business growth, business maintenance, and eventually a great position to sell the business. If you have not been applying the two factors listed above, start now.