He believes it is a sound economic decision to sell if you can net seven or eight times your annual compen- sation. The best time to sell is when you don't have to. Designing an informal rating scale for key selling factors, as suggested by C. D. Peterson in his book, How to Sell Your Business, will give you an idea of how well your business may fare in the marketplace. The more solidly you present the firm, the more appealing it will be. Don't forget that the goodwill your company has built up also counts for some points.
People are the core of the business.
You need to rate your staff's competence, their morale, and whether or not they will remain once the venture is sold. If the business is overly reliant on you as the owner, it may be necessary to train or hire a successor or offer to stay on, at least temporarily. Products and services are often the business. Consider quality, price, reputation, delivery, service and competitiveness. Undoubtedly, a potential buyer will want to know how well the enterprise has performed finan- cially.