Preparing Your Pre-Sale To-Do List

Creating a to-do list before you sell can help you create a clear plan for improvements to your business before you put it on the market.

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The minute you decide to sell your business, you have two choices. You can proceed immediately, offering it for sale in its current condition, realizing you may need to make price concessions to account for unaddressed weaknesses. Or you can delay your sale offering until you've invested the effort and funds necessary to overcome its weaknesses and improve its attractiveness to prospective buyers.

Your answer will depend entirely on your personal motivations and sales objectives. But if you have the time and want to improve the offers you receive, putting together a pre-sale to-do list is a must. Here’s how to get started:

Step 1. Flag the areas of your business in need of pre-sale improvement.

Buyers prefer small businesses that come with low risks and high rewards. The following chart lists aspects of your business that buyers will evaluate when considering it for a possible purchase. For each aspect, check whether your business condition is strong, adequate, or in need of improvement.

•    Aspects of your business that are in good condition will contribute to a stronger offering and likely a higher price.
•    Adequacies will contribute to an average-to-below-average price.
•    Areas in need of improvement will likely force you to offer price concessions unless they are offset by considerable strengths in areas of greater importance to the ongoing success of your business.

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Mike Handelsman is group general manager for BizBuySell.com and BizQuest.com, the Internet's largest and most heavily trafficked business-for-sale marketplaces. @BizBuySell