Do's and Don'ts of Selling your Business.

1. Do Keep good records and have them ready. If you don't have good books the selling price can be significantly impacted. Good books increase the chances of a successful and profitable sale.

2.  Do allow adequate time to sell your business. Selling a business is a lot more complex than selling a house due to the confidentiality and packaging involved. It generally takes 6 to 9 months and sometimes over a year to sell a business.

3.  Do offer terms, by accepting a reasonable down payment and offering terms on the balance you show that you have confidence in the future of the business and in the buyers ability to manage it.

4.  Do consult a business broker about the sale of your business. Successful brokers are very knowledgeable and know the market and what businesses are actually selling for. Be careful of "magic" formulas for approaches to valuing your business.

5.  Do use a good business broker to sell your business. Just as you would hire an accountant & attorney to do your taxes and legal work, you should also hire a broker to sell your business.

6.  Don't wait to long to sell. The best time to sell is when your business is growing and showing a nice profit. If you wait until the business has become flat or started to decline, your selling price will be substantially lowered. Sell from strength!

7.  Don't underestimate the value of your business. Owners usually minimize profit to lower taxes, and the "bottom line" might not show the real value of your business.

8.  Don't sell to the wrong buyer, be as sure as you can, that the potential buyer is capable of running your business. Your competitor, supplier or favorite employee is probably not the right buyer willing to pay market value for your business.

9. Don’t overprice your business. Don’t make the mistake of overpricing your business with the “I can always come down in price” attitude. This sound like a good idea, but in reality smart buyers know what a business should sell for and this often eliminates the best buyers. Your business stays on the market too long and your end up with less than you should have. Start at a reasonable level where the buyer can justify the selling price.

10. Seller’s it’s natural for you to be most concern with your own needs, but don’t loose sight of the buyer’s needs. Unless buyer’s needs are met, he will never buy your business. Sales that actually take place are win/win situations for both parties concern, not loaded heavily to the buyer or seller.

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