Tip #106: Reviewing and comparing the company’s financials on a regular basis.

Know Your Financials Before Selling CartoonBusiness owners should review their financials and compare to previous periods on a regular basis to look for discrepancies and unfavorable trends in the various line items. Identifying problem areas and working toward making corrections will make the business more profitable and create greater value when it comes time to sell the company. Note that buyers for the business, their advisors and lenders will scrutinize the financials closely while performing due diligence. Finding problem areas could lead to adjusting their offer or backing out of a deal.

Read: 8 Red Flags You Can Spot on Your Financial Statements