Very few entrepreneurs think about starting a business to sell it. Most business owners only start to think about selling when they are ready to retire.

But this is too late. You need to plan your sale when you start, and some significant reasons exist.

When you want to sell your business, there is often an expectation of what You can sell it for. But your investment, years of blood, sweat, and tears, do not get added to the balance sheet.

Determine the value of your company

Unfortunately, it is not easy to find the value of your business. Getting an external or third-party person to do a valuation is essential so you remove your emotion from the facts.

Clean up your financials

Using your business as your bank account is too easy, especially if you start as a sole proprietor.Just don’t do itEnsure that when you start, you start legally. Have an accountant that can set your business up with tax and a salary rather than using your business bank account as your own.

Prepare for your exit way in advance

It is very much like a prenup before you get married. Set out your exit plan right at the start. If you decide to exit your business when you are ready to retire, it is too late to correct any compliance or finance issues.

Boost your sales

When you are ready to step back, you need to ramp up the sales. It is not a good idea to settle down and step back too soon. A lower turnover is not conducive to a reasonable sales price.

Get all of your business contracts in order

Ensure you have all your paperwork and contracts: staff contracts, client contracts, and rental agreements. A potential buyer will want to know that they have premises secured before they put in an offer for your business.

To sell your business, you need to be in a solid financial state. When you need to expand or grow to set yourself up for a reasonable sales price, speak to Bizcash.

Bizcash is the company that has funded over R1 billion in SME investments in South African businesses.
Please speak to the team about how they can help you make your business dreams a reality.

Get in touch with us on 0861 93 93 93 or email us on info@bizcashscf.co.za or contact us here.
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