I would have to say that the question “how much is my business worth?” is one of the very first questions I field whenever I start working with new small business owner clients. Perhaps at this point in our Building a Sellable Business series, you know I’m discussing the actual sale of your business now. I’ve even discussed figuring up the amount of money you need for your personal sustainability upon selling your company. So now know the sales price you need when you make at to closing table, but how much should you actually expect to get? But, how do you determine your business worth in the current market?

Most recently in this Building a Sellable Business series, we’ve been discussing the actual sale of the business. So the question I’m about to ask you might catch you off guard. Friends, who is your customer? If you’re confused, you’re defining “customer” as a person in your target sales or service market. But I’m not talking about that customer. If your goal is to sell your business, then your true customer is the person who will ultimately buy your business. That leads to the next question: “How do you identify possible candidates?”. You may be 10, 15, or 20 years from selling your company. Or, you could be looking for a buyer right now. Either way, you have to identify your true customer from the types of business buyers and then position your company to attract that investor.

No matter how many jokes you’ve heard about crooked lawyers, good attorneys can save you hundreds of thousands, or even millions of dollars when it comes time for you to sell your business. Lawyers are not evil; they are a vital part of your professional team. They are some of the sharpest and most talented people I’ve ever met, and you will want to hire a sharp attorney for the business sales contract as you prepare to sell.