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19.12.2019 07:21
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Original Reference:
Even if you are years away from selling your company reading this article could help you generate thousands of dollars more than you expected. Better to prepare now than later.


Organize your thoughts and your transition steps: Always prepare monthly financial statements. You must have current P&Ls and a balance sheet. Do not allow anyone to dissuade you from receiving this vital information in a timely manner. Find out what your CPA will charge you to produce audited statements. You may be years away from selling but buyers will be impressed that you went to the expense and effort to run audited financials. You can't imagine the trust and credibility that you will generate when you show a buyer and his financial team years of not only accurate but honest books. Keep perfect asset records. Each capital purchase should identify the name of the manufacturer Miles Boykin Youth Jersey , the type of machineequipment, serial number, cost Jaylon Ferguson Youth Jersey , date of purchase, age of machine at time of purchase, proposed uses of machine Marquise Brown Youth Jersey , and depreciation methods used. Have written job descriptions for each supervisorial position in your company. Have a short, but comprehensive business plan that is fresh, workable Mark Andrews Youth Jersey , and not hidden deep inside a file cabinet drawer. This plan includes content and financial pro-formas. Run cash flow forecasts quarterly and be sure they cover the next 4 quarters of your fiscal year.


Do these tasks because. How can you run your business day to day without them?even if you never plan to sell your company? You will run the business better, with greater profitability if you do use them Buyers love profits'don't forget to make money. Buyers are impressed with well organized companies with clean and sequential financial documents. Believe me?you will be able to sell for more money when buyers and their teams have trust in your records.


You won't have to tell what I call 'stories.? Stories are nothing more than excuses to rationalize why a buyer should not be too concerned when the numbers don't add up andor the seller wants more money for the company than can be justified in the books Be absolutely sure that all your customers are in a data base that is electronically current. Besides all the normal identification information list the customers email address and Website address if there is one. Show all contact people and which department. Install ACT or GOLDMINE contact management programs and you will be in superb hands. Remember that your customer list is more important than all your assets?except for your employees.


Begin planning for a sale at least two years before going to the marketplace; but if you sense a declining market for your goods and services you may need to accelerate your timetable. Try to sell when your business is prospering. Unless you want to die at your desk at 100 years of age, you will receive the best price when there is still upside. Buyers will buy into upside but they for sure aren't excited about downside trends. Would you buy a business where the seller is telling you stories about why his business has plateaued? Neither would I.


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