How is your business unique and why will your company appeal to a prospective buyer?   What are the primary differences between your company and your competitors? What are the driving factors to choose your business over another? In other words, what is the underlying reason a potential buyer would look to buy your company?  Review the following checklist to determine where you need to spend some planning time.

Define Your Business & Vision

Defining your vision is important. It will become the driving force of your business. Here are questions that will help you clarify your vision:

Who is the customer?
What business are you in?
What do you sell (product/service)?
What is your plan for growth?
What is your primary competitive advantage?
How can I maximize the value of my business?

Write Down Your Goals

Create a list of goals with a brief description of action items. If your business is relatively new, you will want to put more effort into your short-term goals. Often a new business concept must go through a period of research and development before the outcome can be accurately predicted for longer periods.  If your business is mature, you will want to maximize the value drivers that a potential buyer is looking for.

Create two sets of goals:

Short term: range from six to 12 months.
Long term: can be three to five years.

Explain, as specifically as possible, what you want to achieve. Start with your personal goals. Then list your business goals. Answer these questions:

As the owner of this business, what do you want to achieve?
How large or small do you want this business to be?
Do you want to include family in your business?
How do you build a solid management team?
Is there some cause that you want the business to address?
Describe the quality, quantity and/or service and customer satisfaction levels.
How would you describe your primary competitive advantage?
How do you see the business making a difference in the lives of your customers?

Understand What Drives Value in Your Business

A prospective buyer will look into your business with the objective of finding what drives value.  A value driven business is running on all cylinders.   The following list outlines where value can be driven:

Low Customer Concentration
Low Vendor Reliance
Uniqueness of Your Product
High Recurring Revenue
Positive Sales Trend
Positive Gross Margin Trends
Positive Profit Trends
High Market Share
Strong Management Team
Ease of Transfer
Technology/Process Advantages
Intellectual Property
Distribution Leverage
Strong History/Reputation
Strong Sales & Marketing
Strong Infrastructure
Strong Information Systems
Accurate SOP/Business Plan

What Action Steps Should Be Taken Now

Whether you are thinking of selling your company within the next year or five years, you should be taking the following action steps now.

Determine a range of values your company is worth today and a target future value
Prepare an exit plan
Implement a thorough functional review process of your company
Develop standard operating procedures
Evaluate your corporate brand 
Evaluate your intangible assets
Select the right Team and Exit Strategy Guide