Prepare Your Business To Sell: Tip #2

CPA Business Owner MeetWelcome to the second in a series of posts on "Preparing Your Business to Sell." Those of you who have adopted the mindset of strategic business owners are ready to prepare your business to sell. And if you’ve read the first tip in our series, you know that the first step of preparation is to clarify your vision. By now, you’ve become crystal clear on what you want your business to look like on the day you sell it and have written down your vision. Let’s move on to Tip #2.

Tip #2: Meet with your CPA

I recommend that you meet with your CPA to let him or her know when you anticipate selling your business. The timing of this matters: You should plan on at least 2 to 3 years of preparation. Please note that turning your business into a sellable asset does not happen overnight! The type of accountant you have matters too. It is best to have an accountant with experience in helping entrepreneurs like you with succession planning. In your meeting, let your CPA know your intentions and projected timeline. Ask him or her to advise you on your accounting and back-office processes. Then make sure all your processes and procedures are documented in an Operations Manual. In addition, make sure you are generating timely and accurate reports for financial management. Most importantly, have your CPA advise you on tax planning strategies to minimize your tax bill when you sell your business. Remember this: Do not wait until you have an offer to see an accountant! As a business coach for Sugar Land, Katy, and Houston area entrepreneurs, I enjoy helping small business owners get the most out of their businesses and their life! You can hear first hand how we've helped local business owners to exceed their own expectations and have freedom in their businesses and lives. To continue to learn the steps of preparation for selling your business, stay tuned later this week for Tip #3.

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