| 1. The first step is to know the real value of your | | | | and your revenue. |
| business. To get a realistic idea on how much | | | | 4. Consider taxes. Consult with a financial advisor |
| your business is worth, I recommend that you | | | | for help in planning your financial future. It is crucial |
| hire an objective, outside source who can | | | | that you do understand your corporate and |
| perform the valuation process. Some | | | | personal tax situation. |
| entrepreneurs are so attached with their | | | | 5. Make a good impression. You need to show |
| businesses that they are most likely to charge | | | | your potential buyers that buying your business |
| way more. | | | | can bring them more money in the future. If your |
| 2. Prepare your books. Prepare books and | | | | business is at its all-time low, it would be best if |
| documents that can show your potential buyer | | | | you wait until it comes out from its current |
| your business' 3 years worth of financial | | | | situation to make your business more saleable |
| information. Instead of generating these | | | | otherwise, your potential buyers will have more |
| statements by yourself, it would help if you can | | | | "haggling" power. |
| get an accountant to help you out. | | | | 6. Organize legal paperwork. Review and make |
| 3. Determine the profitability of your business. You | | | | your licensing agreements, permits, incorporation |
| need to know how much exactly you make from | | | | papers, vendor and customer contracts, etc. |
| your business as this is the one information that | | | | readily available as these will surely be required by |
| your potential buyers would surely want to know | | | | your potential buyers. |
| about. Document all your expenses, your sales, | | | | |