There are many reasons why you should run your business “ready for sale”. The first is that your business, unlike a job, is an asset and there are many unforeseeable events that may see you “need” to “get out” and therefore having the business “sale ready” will mean you’ll get the greatest sale value for the asset you’ve worked so hard to create.
If (or when) you do decide so sell you’ll need “history” on your side and that’s where running the business over the long term “sale ready” is vital.
You might be wondering what the difference is between running the business in they way you’re doing it now and running it “sale” ready are.
Here’s some examples
- Are you running expenses through the business that don’t really relate to the business? These will negatively effect the sale price and history can’t be re-written. There are ways to claim these expenses and NOT effect the sale-readiness
- Are you running more than one business through the same ABN?
- Are you an entrepreneur sending money on activities that don’t really relate to the business entity they’re allocated to?
- Are all the decisions you’re making to benefit the value of the business at sale? ie: are you being soft on staff, not sticking to a budget etc because you’re working day-to-day and not being strategic.
- Are you budgeting and forecasting? Are you working with these numbers monthly?