Thread by @taywall

Selling a business can be confusing.

Here's the full checklist you need to prepare for a sale...

As @simonsinek says, start with "why".

Every potential buyer will ask you that question, so it helps to have a good answer.

Ready to retire? Want to do something else? Business isn't what you expected? All are great answers, just prepare for the question.

Determine the value of your business.

@baton_market provides AWESOME free business valuations.

Knowing how the market will value your business gives you a starting point to think about what you're willing to sell for and what the market may offer.

Collect documentation that supports your valuation.

Work with a good accountant (like @patrickdichter) to clean up your balance sheet, your profit & loss statement, and your statement of cash flows.

Normalize your financials.

An accountant can help you calculate your net income or SDE (seller discretionary earnings).

By removing unnecessary expenses from the business, you'll increase your valuation and show a buyer exactly what kind of cash flow they're acquiring.

Create a brand overview.

The more you can "sell your business" by showing why it's valuable, the more attractive it will be to buyers.

The more brand assets you have, the less an acquirer will have to do to keep selling your products and services when they take over.

Pull together an inventory list.

Gather all your licenses, contracts, and agreements.

The more you can document the inner workings of the business, the smoother the sales process and the post-sale transition will be.

Gather your legal documents.

A buyer is going to want to understand who actually owns your business. Do you have partners that need to be paid on a sale?

What kind of contracts do you have with partners, vendors, customers, and employees?

Maybe call @smblawgroup

Create a list of all your logins.

Now is a great time to start using @1Password or @LastPass

Include access to all social accounts, online tools, online bill pay, etc. This will make everyone's life easier later.

Prepare for buyer requests.

If you compile most of this information, you won't be surprised as buyers request more and more info.

The more organized you are during the sales process, the more confidence you'll instill in a potential buyer that your business is run well.

Finally, consider outside help.

There are endless resources online to support a small business sale (and lots of buyers here on #smbtwit). We're all willing to help.

If you want a more detailed breakdown of this checklist, you can find it here. And give @taywall a follow for more #SMB content.

learn.batonmarket.com/selling-a-busi…