Cartoon & Tip

An operations manual is a comprehensive documentation of how a company functions. 

If written correctly, it should guide someone unfamiliar with the company through the day-to-day procedures for operating the business. 

Not only does creating a manual help an owner organize the company and help it to run more efficiently, but it can help in the sale of the business.

Showing prospective buyers that there is a manual can let them know that the business is well-organized and that it will be ea…

Many businesses have systems that have been in place for a long time. And some of those systems are outdated and costly. 

And if you ask the business owners why they do things that way, the answer might be "well, it made perfect sense at the time" or "I don't remember why"! 

During the planning process before putting their company on the market, business owners should review all their systems to make sure they are updated, productive and cost-effective.

Showing well-run systems can make a r…

The beginning of partnerships in business can be very exciting and filled with great expectations of success for the future.

But as in marriages, things change, stuff happens and partners are not always as compatible as they appear.

If problems start brewing, it is critical that the partners find a way to express themselves to each other and agree on an immediate course of action.

If the problems aren't addressed, the value of the business will surely go down and no one will be satisfied.

Business owners oftentimes want more money for their companies than buyers are willing to pay. 

Owners must realize that there are many factors that make a business sellable, but cash flow is still the most critical issue. They must understand the elements of cash flow and how it affects the price.

It can be very helpful to work with a business broker or mergers & acquisitions advisor to begin the planning process to be able to put the business on the market for top dollar when the time comes …

Changes in the market and technology are moving so fast these days that many business owners are having trouble keeping up.

If the business doesn't project a strong future, it obviously will not sell for top value or maybe won't have any value at all. 

Business owners must constantly be aware of what is happening in their industry and their own markets to see what steps they must take to ensure the strength and value of their company when they are ready to sell. 

Thinking of selling your …

There are many emotional issues that can make the process of selling a business very stressful.

The negotiations over the price is usually the big one, but there are many others.

Sellers are usually very concerned about what will happen to their employees.

Then there is the whole idea of leaving the company and moving to a new chapter in their life.

Sellers must know that it is common for the process to be filled with emotional ups and downs and must be prepared to deal with all those issu…

Why does it take so long to sell a business?

Business Owners must be aware that the process of selling a business is complex and can take time.

Each business is unique and there are many steps along the way --  particularly if the deal includes outside lender financing. If it shows strong cash flow, it usually will sell quicker.  And when the financials are clean and straight forward, it makes it much easier.

Business owners must prepare their business for sale so it looks attractive to buy…

It can be very discouraging when a buyer suddenly “disappears” from continuing the purchase of a business.

It happens all the time, and in many cases the seller never really finds out why.

The buyer could have a legitimate reason or have just gotten cold feet.

But also, the buyer may have received negative outside advice or doesn’t believe that the business is strong enough to overcome any uncertainties in the market or support servicing the debt.

A business owner must do a good job prepar…