Without exception, no aspiring business owner should actually take the plunge without a clear vision and goals for selling or cashing out of the business at some point in time. Even those owners who intend to pass the business on to family members should manage the business as if they are going to sell to an independent third party.
So what does a successful business owner need to do in advance and what practices must be a part of the daily routine to make a business saleable? Below are four key considerations:
In addition to the above, it is very helpful if you can paint a clear picture for the buyer regarding what the business can look like in one, two and five years with competent leadership and management. You need to be in a position to coach the prospective buyer in this regard. Finally, have a plan that you can share with prospective buyers to retain key personnel and ensure an easy transition. Giving a buyer that peace of mind carries an “emotional value” that will allow you to get a premium for your business.