Updated: Mar 10
If you ask nearly any experienced business broker what is most likely to keep a business from being sold it is a lack of solid financial records.
A broker can overcome declining sales, diminished profits, troubled industry, and much more. But a lack of financials will turn off buyers quicker than almost any other factor.
The depressing part of this fact is that it is totally unavoidable. There is a tendency among many small business owners to try to wear “too many hats” when running the business-meeting with clients, provided a specialized service, ordering product, maintaining equipment-you get the picture.
But what comes last, far too often, is timely and comprehensive accounting of money in and out of the business, on paper, along with balance sheet, inventory control and all the other things that go into maintaining a respectable set of books.
If you are one of those business owners who is always going to get around to proper
bookkeeping, keep in mind that your business is almost unsellable without good financials. Get in the habit of timely monthly reports, find an accountant who will not only deliver your results to you quickly but one who will take a moment to review your numbers and maybe even make recommendations or ask questions about the performance of the company.
Then, whenever the day does come for you to put your business on the market, you will be pleasantly surprised at how smoothly the procedure will work. Life will be easier and the final result much more profitable for you in all respects.