How Records Storage Can Help You Sell Your Small Business

If you're considering selling your business in the future, now is the time to start getting things ready so the sale goes as smoothly, and profitably, as possible.

One vital step that small business owners sometimes overlook is establishing and maintaining appropriate business records management that will be necessary at the point of sale. One Florida business broker, Richard A. Zarzecki, notes the following on his website: 

“The importance of keeping adequate, legible, complete records cannot be stressed enough. Without records, you cannot see how well your business is doing and where it is going. This is your feedback mechanism and "report card."... If you ever plan to sell your business, you will need to substantiate your representations and claims about the business.”

Establishing business value

When someone is interested in buying your business, one of the first things they're going to need to know is what the business is currently worth. The answer to that question comes from an educated calculation involving your company's past performance, the current customer list, personnel and product stock, and expected adjustments to the industry landscape in the near future. 

Providing detailed financial and other business records of both past performance and current state of affairs will allow a prospective buyer to come to a realistic and believable valuation. Without quick and easy access to all pertinent records, a potential sale can pass you by. 

Improving business value

Knowing that a prospective buyer will be using your records to determine the value of your company, it makes sense to review those records long before the sale to discover the picture they paint of your company's value.

To carry out an effective business sale, there are many legitimate ways to convey positive aspects of your business prior to a sale. To do this, you must first be able to access and review the same records the buyer will be reviewing in order to know what information is important to highlight for the buyer.  

The key is proper document storage

Taking advantage of the best available records storage services makes the entire process of selling a business easier and faster. All documents stored by your records management company will be accessible if and when you need them. With computerized file indexing, you can find exactly what you want without sifting through dozens of file drawers trying to figure out an outdated filing system.

If you're not 100% positive your current records management plan has you covered in the event of a small business sale, contact us to discuss your options and learn 3 Records Management Policies Your Business Needed Yesterday.