70 percent of all businesses listed for sale never see an exchange of hands. That means out of 10, only about three sell.
This can be a depressing statistic if you are thinking about selling your business. But crossing the bridge from those that fail to those that successfully make the sale, is not a matter of chance.
It is a result of careful thought and thorough preparation.
There are specific steps to selling a business that you should take, and how well you do at each stage determines the likelihood of making that sale.
Here are 7 steps to selling a business that you should take.
When it comes to selling a business, the preparation starts even two years before the actual listing. You have to make sure all your records are in place and are actually attractive. This means dealing with any damaging tax and legal issues, settling all debts that may make your business look bad and all your books are in a healthy condition.
2. Fine Tune Your Business System
Before listing your business, make sure your business machine is well oiled and in the best working condition. Make sure all employees are in place and are the right fit. Ensure that all paths to your suppliers and buyers are well defined, and potential buyers can clearly see how the business runs.