Your Are Ready, But is Your Business Really Ready?

What does it mean that “your business is ready” for you to exit? Much like being personally ready, the business must also be ready. It is not enough to just say “My business is for sale” and let it go. Generally, this type of process ends up in disappointment for everyone involved. There are many things a potential  successor/buyer looks for when transitioning into ownership of a business. Working through these issues to paramount to a successful Exit.

Selling and transitioning your business is much like selling your house or car. They all three need to appeal to prospective buyers. The more “curb appeal” that your business has the more it is likely to meet all of your goals for sale. Getting the business ready for transition requires preparation. You will not be able to maximize the value of your business unless you have taken steps to prepare the business well in advance of the sale.

Time is one key to the process of making sure that your business is ready to sell. Time allows you to assess the strengths and weaknesses of your business. Not only does it allow you time to assess you company, but it allows you time to resolve any issues that may influence its value and impede the sales process.

Two to three years is the optimal time to have available to prepare your business for transition. With the aim on improving the company, having time to do this increases the likelihood of a successful and optimal sale.

Use the following scorecard to assess your Business Readiness.