Whether you’re planning to sell your business in the near future or you’ve just been thinking about it for a while, there are a few steps you can take to make sure you’re prepared. The best way to get started is to develop a business plan that details your goals and plans. If you’ve never done this before, it may be wise to consult with an attorney. A broker can also help.
Diversify your customer base
Creating a diversified customer base is a great way to build a stronger business foundation. It can also help your company survive economic downturns. Having a broad customer base allows you to mitigate risks and take advantage of new opportunities for growth.
A well-thought-out marketing plan can maximize your chance of success. A well-planned strategy includes a well-defined goal, an appropriate marketing strategy, and the right resources to get the job done.
A diversified customer base helps to reduce the risk of losing existing clients and limiting future sales. A diversified customer base also offers you the opportunity to diversify your offerings, which will increase your bottom line.
Prepare a prospectus
Whether you’re looking to sell your business, or you’re an investor who’s interested in buying it, you should prepare a prospectus. A well-written prospectus will be able to tell prospective buyers about the company’s current market condition, its potential for future growth, and its ability to turn a profit.
The main section of your prospectus should include a discussion of your management team. This will include biographies of your key executives, their experiences, and their qualifications for running the company.
Another section of your prospectus should contain financial information. You should provide a detailed accounting of your revenue and expenses over the past year and a pro forma statement of your projected revenue and expenses for the future. You may also need to provide audited financial statements.
Work with a broker
Getting a business broker to help you sell your business is a good idea if you want to get the best deal possible. A broker has the experience and expertise to make your sale happen. They will also ensure that all of the parties involved are taken care of. This can result in a quicker transaction and less chance of any negative consequences.
A broker can also provide valuable advice on how to position your business. A well-designed brochure is a good place to start. They can also put you in touch with lawyers, bankers, and other professionals. A good broker can also keep your negotiations confidential until the end of the deal.
Get a lawyer
Whether you are selling your business or buying one, you will need an attorney. The best way to find a lawyer is to ask friends and family if they know of a good lawyer. If you do not know anyone, you can use the Nolo-affiliated lawyer directory, which includes client reviews.
You should also hire an accountant. An accountant can help you with the tax aspects of your business acquisitions. He or she can also help you revise your will. You may want to consult with a financial planner, too.
In addition to an attorney, you may need to bring in a mergers and acquisitions consultant. An expert in this area can help you preserve your rollover investment.