You have worked hard to make your business successful and you have succeeded. Now you decide to sell the business. What should you do and how should you do it. The first suggestion is talk with the professionals that have worked with you through the years. Your accountant and lawyer would be a good place to start. If you live in a bigger city check to see if there is a local business broke you could talk with. You will need to immediately gather all pertinent information about your company. These include tax returns, P&L statements and significant bank records. Any long term lease agreements or loan obligations will have to be located for the business presentation.
Tip No 2 – Take as long as you can to pay your bills without incurring a late fee. If a supplier gives business valuation days then take the full If a supplier offers a big discount for early payment, work out whether it is better to take the discount or keep the money in your bank account for longer. Pay regular suppliers before others to maintain goodwill and improve the likelihood of obtaining future credit if needed.
cash flow Tip No 1 – Consider giving discounts for early payments. If your normal payment terms are 30 days, offer a discount for payment within 7 days (or even more if they pay upfront). Discounts are easier to enforce than a penalty for late payment and are also much more attractive to your customers.
Many people, who join professional or social networks for the first time, make a lot of mistakes along the way (just as I did). But don’t despair, this is perfectly normal; and there is hope for you. What can help you to cultivate your networking skills? Making a self-evaluation, to see what kind of networker you are, then look for ways to make continuous improvement.
First, make daily deposits! Second, make your deposits before the bank stops its daily transactions (2:00 PM – 3:00 PM). If your mail arrives late, get a post office box to speed up delivery. Finally, transfer idle cash into interest-bearing accounts. Even at 2% or 3%, this money adds up.
Offers in business sections of papers and trade magazines also will give some idea of a number for your business. There are many business brokers listed on the Internet. Talk to them about what a business like yours is being offered for in different parts of the country. These Internet sources are excellent places to get all kinds of information about selling a business. Reading articles on these sites will alert you to the fact that selling a business is far more difficult than selling a house. There are just more facts to deal with and probably more legal rules to worry about.
Tip No 6 – Give customers as many options for payment as possible and emphasise your preference for electronic payment such as direct debit which have less processing fees than credit cards and go straight into your account.
So in the end, your business goes with the flow, cash flow that is. If it’s positive, survival will most likely continue. If it’s negative, your business will be terminal. It’s only a matter of time.