Does Your Small Business Plan Involve Selling Your Small Business? It Should, Here's Why...

You're probably aware that a small business needs the correct planning to conceptualise, start, build, and grow. But did you know that being fully prepared to sell your business is just as important? Well it absolutely is! Ideally, right at the inception of your business, your business plan should include a good strategy for selling whether through choice or necessity.

It is important to be fully prepared for the unexpected than not. Even if you have no intention of selling it in the beginning because you would want to run it for the rest of your life, a comprehensive plan right at the start of your business that includes selling your small business will be a driving force for you to strive to steer your business to success and bring in the profits.

Just as your small business needs the correct planning to conceptualise, start, build, and grow, being fully prepared to sell is vital. Ideally, right at the inception of your business, your business plan should include a good strategy for selling whether through choice or necessity.  It is important to be fully prepared for the unexpected than not.  Even if you have no intention of selling your business it in the beginning because you see yourself running it for the rest of your life, a comprehensive plan right at the start of your business that includes selling your business will be a driving force for you to strive to steer your business to success and bring in the profits.

There are varied reasons for deciding to sell a business but the most common are:

- Disability due to health reasons
- Retirement
- Death of the small business owner or a business partner
- Disagreement with a business partner
- Change of location
- Bid for new venture/s

Small Business Planning - 

Remember, that the main goal of your small business plan is to achieve and constantly improve your bottom line and to provide you financial security throughout the life of your business as well as build your business value so to maximise your profit returns when the time comes to sell your business. Also, bear in mind that the bottom line will be the first consideration that interested buyers will look into. It is, therefore, important to understand the rationale as to why a good strategy for selling your business should be included in your small business plan.

Accurate financial records help you keep track of your small business' performance –


Many people believe that numbers generally do not lie. Accurate, complete, and factual financial records should be maintained at all times for you to be able to track the performance of your business. They should also be available for review by your financial advisors and government regulators. Serious business buyers get turned off with disorderly and inaccurate records.

Efficient systems and processes save time, effort, and unnecessary costs –

Simplifying and optimising systems and processes help avoid unwanted wastage on resources and the time needed to do certain tasks. An efficient implementation of these systems and processes likewise contribute to healthier profit margins.

A well developed work force is a motivated work force –

The right people are your business' most important asset and they are indeed key participants in the achievement of a robust bottom line. They should, therefore, be properly trained, developed, and fairly compensated to win their loyalty and raise their morale. An well managed work force means an well managed bottom line.

Cultivating relationships promote the proper connections –

Acquiring friends and fostering healthy professional relationships inside and outside your organization will help you a lot in your search for potential buyers for your small business. Interested employees, customers, suppliers, brokers, advisors, other business owners, or even competitors can be prospective buyers or can provide useful referrals.

Small Business Planning 


Good housekeeping projects a good image –

All throughout the life of your business, everything should be in its assigned location. A clean and organised work place can inspire and motivate your employees to do their best to help realise a satisfactory bottom line as well as promote a good image for your company. Your company properties should be regularly maintained, repaired, refurbished, renovated, or reconditioned for optimum performance.

Several contingency plans lead to better options –

It is prudent to have on hand several business selling options to fit the requirements of the specific circumstance compelling you to sell your business. Among these are:

• Selling your business yourself
• Selling your business through stock options
• Going into partnerships or mergers or simply liquidating all your assets

Keep in mind it is always worth while having a step by step business selling plan of action at reach in order for you to sell your own business anytime and on your terms.

Why Small Business Owners are Choosing to Value Their Own Business

Thinking Of Selling Your Business? Don’t Until You Hear This… Why Small Business Owners Are Choosing to Value Their Own Business

Selling your small business for its true value and at the very best price is definitely challenging, however surprisingly straight forward.  More small business owners are becoming aware of just how simple it is to sell their own business without having to pay the large commissions.

One of the most common reasons why small businesses which are on the market do not sell is inaccurate business valuation, resulting from an incorrect selling price that may either be too high or too low.  In determining business value, the mathematical expression of total assets minus total liabilities is only half the whole picture 

When preparing your small business for sale there are a lot of other variables that must be considered to come up with an acceptable business valuation especially to attract potential buyers.  As you are aware, no two businesses are the same, so why should they be valued the same way?  That is why it is imperative to calculate your business valuation and include absolutely everything - just the 'multiple' method may not cut it.

How to Sell Your Business - Daydreaming about getting out of your business? Wonder how you would go about selling your business?

Do you find yourself thinking about getting out of your business and wonder how to go about it?

Selling your business /exit planning is a broad and complex topic.  No two situations are identical. 

The right exit plan depends on the business itself and the needs and wants of the business owner, however, no matter who you are or what circumstances you are in, this is one strategy that can be used by all business owners:

Do not procrastinate – Get started now.  I cannot emphasise this enough.  Even if you have only just started in your business, you ought to always run your business with one eye on the exit.  After all, you may not control your exit timing.  You may not even be around to manage the process.

However, lets assume you are and you plan on selling your business to retire.

The process of selling your business - Consider that some businesses may take a year or more to properly prepare for sale.  This can be due to the involved nature of them or the lack of prior planning and available information.

Keep in mind that to put a business on the market without the correct preparation can have disastrous consequences on the business valuation- sale price of the business.

Planning and knowledge of the process is crucial and business owners that are educated about the exit planning process will achieve the best outcome.

Start running your business with the end in mind.

For more information visit http://www.bizsalekits.com/.  There's a great little free book for business owners to get started on called 'Insider Tips for Selling a Business'

Preparing your business for sale - Adding value to your business to attract business buyers

As a business owner there are some simple ways to improve your business while preparing your business for sale now or in the future.

In order to add value to your business there are a number of things you need to have very clear in your mind.

Initially, think about the vision that you have for your business and where you see it in the timeframe you estimate selling your business. Go over all the things you really want from your business and seek out ways to improve your business in order to get there.

Then take a step back and make sure your business does not depict you (the owner) as just having a job. You will need to structure your business to show it will run without you. This will attract business buyers and help add value to your business.

“You read a book from beginning to end. You run a business the opposite way. You start with the end, and then you do everything you must to reach it.” Harold S. Geneen

During the process of preparing your business for sale it is important to demonstrate a well-organized and effective operation that can function at arms length – this too will add value to your business and attract business buyers.

There are some things you must put into action first, such as:

- Ensure your business has a clear structure. Separate your activity into sections and areas. For instance, you have to establish what needs to be done and then what should be systemized

- There may be clients /customers you need to meet and networking events to attend to help your business grow

Preparing your business for sale – your business image and your employees

When it comes to having a team or staff, it is vital for everyone to know exactly what they have to do. Each person has to clearly understand his or her role and responsibilities. Your employees represent your business image and play a critical role in attracting business buyers.

You will also need to create a safe and friendly business environment by motivating and supporting staff to be efficient and do their jobs right.

Building and adding value to your business

When it comes to attending to your customers/clients needs, you should be very diligent and make sure their requirements are met 100%. This can be a very time consuming activity, however a ‘must do’ and why this also needs to have set out procedures in place.

Organize your scheduled meetings, settle on the points for discussion beforehand, establish the goals and the strategies to employ in order to reach your goal and keep you on purpose. This will help you save a lot of valuable time as well as help keep everyone on the right track.

As a small business owner you cannot afford to fall into the busy being busy trap – plan your day to guarantee this doesn’t happen.

To ensure you are providing your clients with maximum value added services and faster solutions for their issues, it is extremely important to establish regular communications such as email, newsletters, calls, networking and educational activities.

All these things are of great importance in order for you to structure your business and attract business buyers.

But remember, when preparing your business for sale, the essential thing to do is understand that you cannot do it all by yourself.  Becoming a workaholic is not a solution.  Learn to delegate the minor responsibilities and keep yourself focused on doing the most productive tasks for your business.

By working primarily on the activities that really require your effort and your expertise as the business owner, you will be adding value to your business as well as consistently maintaining maximum value, enabling your business the power to attract business buyers at any time.