Be sure you are serious

Selling a business takes time and complete commitment.  “Testing the water” to determine what your business might sell for is simply no worth the possible disruptions that may occur to your business while you are not focused on the business.

Prepare statements and other information in advance

You are more likely to entice a potential buyer if you have prepared financial statements and other marketing material to promote your business.  If you have the information prepared in advanced you can provide the details the buyer requires in a timely fashion, thereby lessening the chance the buyer will move on to another deal.

Determine what your business is worth

While a business is only worth what someone will pay for it, a proper valuation will let you know what you should expect.  A good rule of thumb is businesses typically sell for less than its annual revenues. If you're trying to sell for more than that, be prepared for your financials to be examined under a microscope.

Consult with a team of professionals

Once you have done what you can to prepare your business for sale, bring in the pros – an accountant, lawyer, or an all inclusive team such as FNBB.  Pros may suggest may make additional suggestions regarding valuation and preparation.  Pros can also help you present your business to potential buyers and ensure all documents are ready for a smooth transaction.

Ensure the sale remains confidential

Once your customers or employees learn you are selling the business you could face a mass exodus or your staff may cease to perform at the full potential.  Moreover, competitors may use this time as an opportunity to take your clients or vendors may refuse to extend credit.  All information of the sell should remain confidential until appropriate legal documents are in place to protect your interest.

Make sure the business looks good, but not perfect

Most buyers want a deal.  If the business looks too good they may fear that it is valued to high.  It is always wise to display to a potential buyer the things that could be better to help the business grow.  For example, disclosing to a buyer that your business has done well in quality, but could do better in sales could make the business look better.  The buyer may be strong in sales and marketing and believe the company is a perfect fit.  The buyer will also know that there is room for improvement.  In essence, the buyer can put his own stamp on it and continue to grow what you started.