Selling a company Prep Tip # 1 - Create a business plan and exit plan

Are you coming or going? This may seem counter-intuitive, but when you sell a company, to update existing business plan - or create one if none exists.

Although many companies call their annual budget of a "business plan" is not what we're talking about here. A business plan is a written document that follows the management to develop, grow and manage a business. The business plan address the strategic and operational matters. They describe the current state of your organization and future plans, strategies and map the financial, operational and marketing strategies that enable companies to achieve its objectives. A potential buyer wants to see that you and your team have the foresight and discipline to do this level of proactive planning.

If you've never created a business plan, believe it or not, now is a great time to pull a whole. You may find that you have an opportunity to increase the value of your company into something relatively short time, or you may discover hidden value that will help your sale price.

In addition to providing strategic information on your business while preparing for the sale, the business plan becomes part of the marketing package when you sell. It should include three years of audited financials and three-year financial projection, because this is what buyers usually required. Also, summarize your industry and its growth trend and include a review of competitors and how your company is positioned against them. The buyer will want to understand the size and health of your industry.

This is an opportunity to put in place plans to address the unique challenges your business faces. For example, if the industry has a growing challenge due to global competition, look for both the healthy areas of industry and business and focus on building around them, or create new capabilities to address the circumstances of the stress field. These would then be documented in the business plan.

An objective analysis SWOT (strengths, weaknesses, opportunities and threats) is a standard element of a business plan. Although it may be difficult for you to be objective and you will be inclined to overestimate the strengths and minimize weaknesses an honest discussion of weaknesses make you a more credible seller. Furthermore, you are legally and morally obliged to reveal everything of relevance to potential buyers.

The hiring of a consultant or adviser could keep moving the goal and ready for sale faster, because a thorough and objective SWOT analysis helps buyers determine what they need to make future investments. When we do this work with clients, we find that the credibility increases with the inclusion of any third party to industry reports, analysis, forecasts and similar documents.

Perhaps counter-intuitively, this would be a good time to review the mission or vision statement as well. He captures your principles and goals? He sent the message that is congruent with what your organization does and that will attract the buyer who wants?

It may seem like writing a business plan when you are planning your exit strategy is like closing the barn door after the horse has left. However, you can be sure potential buyers will want to see one. It will impose an important exercise that will help you see the company as they want.

I invite you to use these ideas will hit the road to sell a business .......