The intangibles
While getting your business organized from the legal and financial perspectives is clearly important, don't forget the less formal things that might also affect a sale. It's likely, for example, that potential buyers will visit your premises. Take a realistic look around and consider how it will be perceived to a potential buyer. Is it clean and well organized? Is the equipment up-to-date and running well? Is the space pleasant for staff and customers? How is your staff morale? If a potential buyer were to strike up a conversation with one of your employees, what are they likely to hear?

Next, move beyond your physical space, and consider your company reputation. Have you had any bad press or social media feedback in recent years? It's so easy to find these things online, so do a search yourself and be prepared to answer questions on anything negative that results.

And finally, prepare yourself for the inevitable personal questions that will arise during a sales negotiation. The most important to a buyer might be

'Why are you selling?'

Do you have a business plan for the next three years? A prospective buyer will want to see at least three years' worth of financial information, so make sure your books are in order for review. Of course it's not the past that matters most to a buyer, but the potential for future gains. Most business owners have at least a rough plan in mind for taking the company forward. If you haven't already, you should consider preparing a formalized business plan that projects the next three years' revenue and outlines potential growth and opportunities. If potential buyers are unfamiliar with your market or industry, you can build confidence with a market overview, a frank
SWOT analysis, and a summary of the competitive arena.

What do you do with all the information you've prepared?

Once you've completed your pre-sale planning, you can assemble all this information in one (or more) neatly organized binder so that prospective buyers can review it easily. This not only gives them everything they need, it also allows you to continue with the everyday operations of your business instead of having to drop everything to search for information at each prospective buyer's request. It will make the sales process as smooth as possible and give the potential buyer the confidence that they are buying a transparent and professionally run business.