There are a number of things honest investors will want to know about your small business before purchasing it. Anticipating these things can prevent any nasty surprises, and allow the process of selling your business, in whole or in part, to move along faster. Not giving clear and detailed answers could compromise your position, so be sure to be succinct.
A lack of clarity can lead to some time spent in court, so be careful to anticipate issues that may arise, and do your best to head them off using honesty and openness.
Because you are the entrepreneur selling your company, use the information you have obtained while running your small business to properly evaluate the deal. Use your knowledge to present a complete picture of your business, and ensure it is all written down so both parties involved have the same perspective on what is being represented in the sale.
Wise investors will approach the deal with a degree of cynicism, so provide them with honest information pro-actively. This will illustrate that you have nothing to hide.
Body language can also be key, with a nervous demeanour suggesting you are concealing something from your investor. You need to be a professional, and seeking help from appropriate consultants beforehand may make the process easier on all involved parties.
If you are selling off your business outright because you are looking to shift professions or need to sell shares to bring investment into the company, here is a list of things you should consider:
Passing on your small business can be a large risk, with complications arising due to a lack of proper preparation and communication. However, when everything is said and done, the process can be extremely worthwhile and profitable.