Selling off your business is always a difficult decision. You spend a lot of time and effort in working hard to build a business from scratch, so it is obviously difficult when the time comes to sell it off. However, before you put up a local business listing in San Jose, CA, there are many things that you should do. If you have decided to sell off your business, you will at least expect to get a fair value for it. Unfortunately, most people often get their business valued at much lower price points than they initially expected. If you want to sell off your business at its highest valuation, here are a few things that you should keep in mind.
Secure New Contracts
The first thing that you need to do before putting up a local business listing is to tie down your existing customers to new contracts. Take a look at your list of customers and highlight those contracts that will run out within the next two years. Contact those customers and tie them down to new contracts with the same, if not better, terms and conditions. It is important that you secure your existing customers to new contracts before getting your business valued. If a person is interested in buying your business, they will take a look at your running contracts. If they see that a majority of the contracts are going to run out within the next year, they will automatically scale down their bid. However, if your business is running smoothly and all of your contracts are in order, you will be able to receive a much higher value for your business.
When a prospective buyer expresses his or her interest in your business, the first thing they will want to look at it is your company’s financial information. Unfortunately, most entrepreneurs don’t keep proper records of their running finances. You should have detailed financial information, ranging from cash flow statements, debtor and creditor accounts, and profit and loss statements to balance sheets and revenue accounts for the past five years at least.
If all of your documentation is in order, it will show that you are a prudent businessperson. When you hire a broker for valuing and selling off your company, they will also want to take a look at the accounts. That’s why it is necessary for you to get your financial information in order before calling in any local business valuation expert. These are just some of the most important things that you need to do before you sell off your business.