In addition to the items mentioned in the previous posts, e.g., job descriptions, financial reports, etc.,
Quorum Business Advisors believes there are several other key factors that will help sell your business. Here are some key questions to ask regarding the saleability of your business:
1. Has the business grown over the past year? Two years? Three years? Growth is good.
2. What is the forecasted growth for this year? Next year? Five years? Projected growth is good.
3. When do your customers pay you? Prior to receiving the goods or service? 50%/50%? After completion of the job? The less accounts receivable, the better.
4. Do you have a business plan? Business plans addressing all aspects of the business are good.
5. How much revenue does your largest customer generate? A diverse revenue base is good.
6. How many hours does the owner work? The less hours worked by the owner, the better.
7. How much revenue does your largest product or service generate? Again, a diverse revenue base is good.
8. How frequently do your customers buy your product or service? The more frequent, the better.
9. How incentivized is your management team to stay? Continuity is good.
10. How much employee turnover do you experience? The lower, the better.
Quorum Business Advisors