How do you rate and prepare your business for sale?

The routine that leads to building a business and creating a happy customer's book is notoriously difficult. Perceiving the nocturnal successes that fill the waves reveals the long and lonely hours and the few rewards of fighting for start-up and profitability.

Value of a business in profits.

My friend (we call him Mark) told me that if he wanted to sell a business as soon as possible, the valuation should be based on the profits the company earned. A multiple of the profit is the cheapest method for the valuation of the buyer, since it is based on the actual earnings of previous years. It is a success story that can help identify the true value of the business without lengthy negotiations.

Evaluation of a potential company.

In the technology industry, it is much more common to measure the value of a business for potential investors in potential profits. While billionaire Mark Cuban likes to demand expensive investments in start-ups and tech start-ups, "FOMO: the fear of losing money," the cost of buying or investing in technology can be dictated by the frenzy of investors surrounding the company.

Certainly, valuing a business based on the potential for the founder (s) is much more lucrative. After all, the potential could be enormous, even in a badly executed company. So if you want to trade longer, you should encourage potential buyers to rate your business based on the product's potential or the exclusive service that your business offers to consumers.

Good housekeeping.

Nobody wants to buy a lemon. Whether it's cars or shops, shoppers want a smooth transaction and a smooth property.

First, you should collect the financial statements and tax returns of the past three years and check them with a professional accountant to make sure all your documents are in order. Other important documents include leases, ownership proof of the property you own, and any debts owned by the company.

If you have the opportunity to eliminate debt from the corporate ledger, stick to the obligation and pay. You must ensure that the contracts are lawfully concluded between the parties and ensure that all founders have been satisfactorily paid for the previous work while keeping them informed of your sales decision. If the company's current ownership is on board, the paperwork and contract are in order, and the business is working well, it will be much easier for you to find a motivated buyer.

The journey from founder to investor is a difficult but potentially rewarding experience. It's a time when all the hard work and dedication can pay off. You can finance your retirement and finally live up to your terms. But do not let your enthusiasm for retirement (or your next start-up) make you lose money on the table. Take your time, inject all the "I's" and run your business on your terms.