What is your business worth?
03/17/2016 | Author: Editorial Staff
Maybe you’ve never thought about it, but one day you might want to sell your business. Even if that day won’t come for years, there are ways to prepare right now that will make your business easier to sell later. Here are three considerations to start with.
What is your cash flow?
Any potential buyer looks first at the business’s cash flow. Make sure you can prove repeatable cash flow in your business by having systems that show how you handle every transaction. Each transaction should be done in a similar way. When you make your business about the process rather than you, you’ll gain more interest and can sell at a higher price.
Check your financial pulse
Periodically schedule a financial checkup with professionals like a CPA or wealth manager. They’ll be able to help you identify problems in your business model.
See your business as others would
You’ve experienced first hand how hard it is to separate a seller’s opinion of value with reality. Use that edge and view your business as though you were a prospective buyer. Get other professionals’ feedback about where you stand, and be open to changes that would to make your business more appealing.
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