The time to get your business ready for sale is well before you intend to sell it. This is true for a number of reasons. One reason is that many of the changes will help you immediately. Another reason is that valuations give greater weight to longer term trends than shorter term ones. Still another reason is that newly implemented improvements are obvious and even worse, faulty. Here are seven things you can start today to increase your business value.
1. Know your financial statements…in detail. Not just your income statement but you balance sheet and your statement of cash flows as well. Anyone who is interested in buying your company is going to dig into them so you might as well get a jump on them.
2. Get a valuation of your business to better understand what is positively and negatively affecting your valuation.
3. Dissect and identify how you can improve your operating cash flow.
4. Make the investments that increase income immediately. Not only will you reap some of the rewards but proven long term earnings have greater value that short term earnings.
5. Conduct an online reputation management program to address negatives and build positives. Repeat regularly. Here’s a link to a very good resource that I found: Online Reputation Management Guide
6. Document operating procedures and test. Make sure they are ingrained since buyers can tell during due diligence when something is ingrained versus being staged.
7. Dispose of obsolete and unused equipment, materials and supplies. They take up space, add clutter and don’t add value.
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