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Four hints to help you plan for the best possible sale

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In the past few years, small business owners who wish to sell their businesses have found it necessary to reduce expenses and wait patiently to recover from economic losses. There's absolutely no point attempting to sell when your profit and revenue is low. Low-balling purchase prices just worsened the situation.

In 2010, there was some improvement in the market for businesses for sale. Experts believe that things may turn around completely in 2011, making this a good time to sell a business. Banks are concentrating more on loans and more finance choices are available to buyers.

If you want to sell your business this year, remember these four points to help get the best price for it.

Plan ahead. Business buyers will research businesses very carefully before finalizing the purchase. It's vital, therefore, that those sellers are able to show why their business is worth the price. Ensure that your financial records are well organized. Hold onto business documentation, for example expense documentation and tax returns, for at least the last three years. If you want to establish trust with your buyers, it has been historically proven that this is necessary. You should also close out any remaining operating issues. Included in these may be outstanding legal issues, a tendency to rely too much on specific customers, or a lease agreement that is only short term.

Remember to clean up the business physically as well. Spruce the place up by redecorating, cleaning up your distribution facility, and painting your storefront. Ensure that your business looks good, because aesthetics often account for a buyer’s first impression.

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