How to prepare your business for the sale
Your sales presentation to a prospective buyer will include the company financial statements for the past 3 years. Therefore, you should always prep your business to show a 2 or more years up-trend that supports your market value. This includes:
Additionally, you should:
Cash is King in any buy-sell relationship. Your financial records need to reflect the cash position of the business using standard accounting practices. But more importantly, you need to have a positive net cash position that support the asking price of your business.
Increasing the net cash position include the following:
You need to market...market...market. But you need smart marketing that shows direct and e-commerce sales. Businesses with marketing plans in play allow a new owner to step in and capitalize on your established channels. That increases your value.
The hardest business to sell is where the owner is the "goodwill" of the company. This becomes the biggest fear of buyers - once you leave, the business relationships dry up.
Revamping your operations to move you out of the day-to-day is a high value proposition for buyers. You are not removing yourself from the business, but lessening your role in the factors that make-up the goodwill value of the company.