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The importance of the business plan for buying or selling a business

An entrepreneur like you, who wants to sell his business or get an existing one, must have a clear idea before making any move. Writing a business plan – or business plan – will help you identify the main problems that may arise. Only by identifying them can you anticipate them. Do you think it will be useful to you?

The biggest challenge for those who buy

When acquiring a company, it is important to evaluate if the old owner manages any pending commitments carefully. In addition, the new head of the company will have to agree with customers and suppliers about the new collaboration. These steps are essential to ensure 0 surprises.

Also, try to be clear if the movable assets present in the company are still valid or obsolete. In the latter case, consider future expenses and evaluate how much they would amount.

He then agrees with the previous owner regarding the purchase price and guarantees. These will have to be proportionate to the opportunities offered by the company and the potential risks. Again, an industry professional will be essential for these assessments.

Finally, remember to include possible emergencies in the business plan: do you already know who could competently manage your business in case of need?

Business plan for those who sell

A detailed business plan is also what you need to plan the success of a business. For example, if you have decided to sell by providing a “data in hand” document to the interested entrepreneur, you will demonstrate professionalism and transparency. What to include in the paper?

A good business succession plan includes the pension component. In this way, the investor can get a realistic idea of ​​the conditions of the company and its development possibilities. In addition, providing a map of the company’s current situation will help you make it more appealing and close the sale.

11 questions to answer to develop a valuable business plan

Never overlook the details. We have compiled a list of useful questions for those who need to draw up a business plan. We give various tips to investors, but if you are planning to sell a company, you will find just as many ideas for your business plan.

1 What are your business goals?

2 Do you want to manage the company as the old owner did, or do you want to revise the business model (change some sectors, for example, or restructure everything)?

 Do you want to keep the current image of the company? Do you prefer to modify it over time or completely change it as soon as it is yours?

4 Should current products and services be maintained, changed in part, or completely? What time frame did you expect to do it?

5 Have you thought about the presence on the market of the company you want to take over? Will you leave it as it is, or will you try to intensify it by relying – for example – on marketing professionals?

6 Will the company’s current employees remain the same? Should the staff be modified, implemented, or reduced?

7 What kind of investment will you have to make? How much is it?

8 Will the company headquarters and premises remain the same, or will they be changed? The furnishings and work tools?

9 Will you keep the same business partners, or do you want to invest in new partnerships?

10 What is the current legal form? Have you checked that it corresponds to the activity carried out?

11 Is the financing of the company balanced if you consider the investments to be made and the value of the business? Have you thought about any interventions in terms of capital to be done independently or by using third parties?

 

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