I. Thou Shalt Not Be Greedy!

Buyers look at many businesses before buying. Offering reasonable price and terms will get a prudent buyer's attention.

II. Thou Shalt Have A Good Reason For Selling!

After the buyer asks "How much?" The next question is "Why is the seller, selling?" The reason must be logical ...to the BUYER.

III. Thou Shalt Provide Proof of Profits!

All books and records should be clear and readily available.

IV. Thou Shalt Be Willing To Train!

Most of those purchasing a business are first-time buyers and will need a minimum of two weeks training.

V. Thou Shalt Provide A Covenant Not To Compete!

Buyers want to make certain they will not be competing with you for the same customers.

VI. Thou Shalt Be Willing To Help Finance The Purchase!

Seldom will a bank finance the purchase of a small business. Over 95% of small businesses sell with seller financing.

VII. Thou Shalt Provide A Complete List Of Assets!

Buyers want to know what they are buying before making an offer.

VIII. Thou Shalt Keep Thy Business In Good Repair!

Clean, neat appearing businesses sell.

IX. Thou Shalt Prepare The Landlord For The Sale!

Landlords can be real "deal killers" and buyers need to know if the lease will be assigned or a new lease will need be negotiated.

X. Thou Shalt Avoid Surprises!

Surprises tend to destroy the buyer's trust and will send them running, not walking, to another opportunity.

WHY YOU SHOULD CONSIDER FINANCING THE SALE!

• You're likely to get a far better price for the business!
• You will get more for your business because of interest!
• Consider the tax consequences of an all cash deal!
• Buyers may conclude you lack confidence in the future of the business!
• All cash is likely to reduce the number of prospects!

SOME STEPS TO REDUCE THE RISK OF FINANCING!

• Require sufficient down payment. At least 30%.
• Require the buyer to personally sign a promissory note.
• Require a credit report and resume.
• Require the filling of a UCC Security Agreement.
• Require quarterly financial reports for the business.
• Most importantly, allow a pay out period that provides the buyer a living wage after debt service.

About the Author:
Bob Macek is a business consultant specializing in small mid-size businesses. He has been a Professional Business Broker since 1982.
If you have questions regarding the purchase or sale of small, mid-size companies contact Bob at: bob@probizusa.com