8. What should I consider when preparing my business for sale?
The most important thing when preparing for a sale is to make
yourself redundant.
It is very hard to sell a business that is totally dependant on
you working a 60 hour week. Who wants to pay good money for a
life like that?
In particular, start banking all the money, even if it means
paying tax, and write up your closing stock and work-in-progress
to full value.
Next is the question of perceived risk for the buyer. The lower
the risk, the higher the price.
So the more you can do to instil confidence in the buyer, the
better.
You can do this with documentation – document your sales, your
supply agreements with suppliers and customers, your procedures
etc etc.
