If you are a small business owner thinking of selling your business you may have many questions about the process and how to go about doing so. The overall process is quite unique (slightly different from the sale of real property) and there are many misconceptions. Working with a business broker to guide you through the transaction.

Selling a small business is a different process of selling a medium sized one – the transaction is generally much more emotional for both the buyer and seller. Also, the buyer will usually try to “buy a job” – or perhaps to replace a job. That said, they need to feel right about buying. As the owner of a small business are some things you can do to help a buyer feel more comfortable.

The purpose of this paper is to describe some things you can do to help your chances of selling your business.

Dealing with a professional business broker

Many times owners of professional contacts an area “real” business when they sell their business and do not even contact a broker “business” – or a target person in the field of business brokerage. Selling a property is very different than selling a company as dealing with a professional is centered in the brokerage business.

Get your books in order

Having readily available financial information is very helpful. Buyers can request this so please be prepared. Also, the broker will require financial information to help you determine a listing price for your business. Talk to your accountant to prepare early in the process.

Claim your “cash” sales

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Several business owners say their business is a “cash” sales operation and have no paper trail. This is strongly discouraged for several reasons. If your company is actually a “payment” we then prepare early – start to claim your “silver” sales for 6-12 months before it announced the sale to a buyer to prove that such sales are real.

Keep your small business Neat & tidy

If you are serious about selling your small business, then your store location, removing clutter or maybe adding a layer of paint may be important in the eyes of an investor. An owner who takes care of their place is seen as a responsible contractor and built goodwill with investors.

Make sure the equipment and construction machinery

If your business machinery and equipment please ensure it is operational and properly maintained before the show to potential buyers.

Be realistic about the timetable and price

Selling a business can be an emotional journey for a business owner. Often, expectations about the seller’s price is too high and may ultimately affect the chances of finding a buyer. In addition, the sale is a process that can take several months to consume. A sale of the company usually takes much longer than the property so please be realistic that the process may take some time. There may be some false starts on the road or maybe even accepted a conditional offer which decompose during the due diligence process.