Most business owners put the majority of their efforts into focusing on making profits. In addition, running a successful business can often be demanding, require long hours, and cause overwhelming stress and consuming pressure. As a result, an exit strategy is often given low priority and delayed. Business owners inherently think that there is plenty of time in the future to plan for their exits and prepare their businesses for a smooth sale.

However, there are a couple of problems with this rationale. Quite often business owners decide to sell their businesses when they are burnt out and no longer have the energy or zeal required to continue running and growing their operations. Once they decide to sell their businesses, they try to implement a series of "quick fixes" that will make their businesses appear more profitable and therefore more valuable.

The problem is that sophisticated and experienced buyers will be able to see right past this façade and conclude that the business is not as efficient or successful as it actually is, and therefore lose interest in the company. Only by attracting sophisticated buyers will a seller receive top dollar for his or her business. Also, when there is a lack of strategy in selling a business, it often leads to a seller making impromptu decisions that can greatly reduce the value of the business.

Smart business owners are starting to realize that wealth and success does not generally come from the earnings of a business but upon the exit from the business. By keeping in mind some crucial aspects  you can be ahead of the game when it comes time to sell your business.

Preparation & Planning
The key is to prepare early and plan strategically from the get-go. To achieve a successful exit, a business owner needs to run his or her business with the goal of obtaining maximum value long before attempting a sale. This means concentrating on the ramifications of every decision from marketing strategies to employee management. The smoothest acquisitions in which a seller obtains a gratifying price always include a seller who has kept their focus on the definitive disposition of the company. By always managing a business as if you were going to sell it tomorrow, you will not only maximize the selling price, but you will likely also maximize the amount of cash that you take home each year as well.

Look Through the Eyes of a Buyer
If you were an outsider looking to buy your own business, would you be impressed or would you see room for improvement and change? Look at your business with a critical eye and consider how it presents itself. Buyers want to be proud of what they acquire and will pay more for a business that portrays success and potential. There are many key areas (in addition to profit) that potential buyers look at before considering making an offer on a business:

Strategic Planning
You need it for marketing and general business growth. Without formal plans potential buyers may assume that management lacks vision, or worse, that there is no room for growth. By having formal plans in place a business owner shows focus and successful business administration.

Risk Management
Minimize uncertainty or potential dangers that could cut into profits. For instance, if your business is reliant upon a couple of key customers, future performance could be uncertain and therefore make your business unattractive to potential buyers. You can lower your risk by diversifying your customer base or expanding into related markets, thereby increasing business worth.

Integrity
This, of course, includes being honest and dependable not only in your business dealings with customers but also with all other professionals and especially potential buyers. It is only natural for potential buyers to be skeptical so be prepared to answer questions and provide explanations for all financial aspects of the business, reasons for selling, customer and employee base, challenges, etc. Building a foundation of trust between the seller and buyer leads to a smoother transition for the sale and succession of the business.