10 Key Moves When Selling Your Small Business
Mon, 20 April 2009 AEST
Email
Print- Get on good terms with the tax man. Got an extension for filing your taxes? Pay them now. Ensure that all your taxes, BAS-Statements and rebates are up to date.
- With your accountant, review your financial statements for at least the last three or four years. Most small business owners deduct legitimate perks-vehicle use, higher-than-average salaries, and so forth. You'll need to "add back" these discretionary expenses so that a buyer can see what it will truly cost her to run your business. Depending on the buyer, you may need to have your financials audited as well.
- If you've been mixing personal expenses with business, stop. At the very least, it's confusing to a buyer, but it can queer a deal altogether.
- Spruce up your facility, like you would if you were selling your house. Fresh paint matters. Be proud.
- Follow the rules. If your industry is regulated, make sure you're complying with every regulation and that you can prove it with the necessary documents.
- Get help valuing your business. Assessing valuation can be complex, especially if your business is unusual. Medici Capital can provide you with a comprehensive valuation of your health practice. Valuations form a core part of our business and we can assist you with the assessment of what your business is worth.
- Examine your customer list. If you're relying heavily on one or two large accounts, start diversifying. Dependence on a few large customers is a liability.
- Get out of the way! Buyers don't like businesses that will fall apart if you're not there to run everything. Remember, if the goodwill of the business leaves with you, you will not obtain a high sale price for your business.
- Create or update operating manuals. Document how you do things so that a stranger can follow the instructions.
- Don't insist on an all-cash deal. In some industries, buyers may expect a 20-percent discount for paying 100 percent up front. You may also look to partnership strategies as a form of succession planning - contact Medici Capital about our partnership facilitation programme.
If you're thinking of selling your business, contact Practice4Sale to find out how you can anonymously list your business for sale; ensuring that it is advertised to professional practitioners in a discrete and confidential manner.
More News From Jobs4Careers:
Questions you should Ask the Seller and/or Business Broker
Particularly in these economic times, buyers should be prepared when buying a business.
View remainder of: Questions you should Ask the Seller and/or Business Broker
Practice Wanted System
Are you looking to buy a professional practice? If you have been looking to buy a professional practice, but are having difficulty in finding sellers of these businesses, then you can now make use of our Practice Wanted service ... FREE!
View remainder of: Practice Wanted System
Elements of a Successful Job Application
With a 15 to 30 second opportunity, you'll need to convince a prospective employer that you're a perfect match for their position. The overall impression you give with your cover letter and resume is vital. Does your application stand out from the rest? Is it clear and well organised? Does it articulate your skills, abilities and strengths and stand out from the crowd?
View remainder of: Elements of a Successful Job Application
Value and Price - Are They The Same
What's the difference between value and price? Surely, the value is what someone is willing to pay for the business! Or is it? And, does the difference justify the investment or matter?
View remainder of: Value and Price - Are They The Same
Employer Hiring Checklist - Get To Know Job Applicants
Finding the right employee to fit the needs of a business is a delicate task. The impact of choosing the wrong employee can be compounded when dealing with small businesses where staffing arrangements are more personal. So in order to assist you in finding the right staff, we have provided some insights into approaches to be taken to understand your applicants.
View remainder of: Employer Hiring Checklist - Get To Know Job Applicants
More Video Resources From Jobs4Careers:
Listing Education: Tips on How to Write a Great Resume
How to Write a Great Resume: Listing Education
