Is There a Need to Prepare a Business Plan and Model?
In almost cases, it will be worth the effort to prepare a business plan and business model when you are selling your business. If you were to think in the shoes of the potential buyer, they would want to understand how your business generates revenue now and for the future.
Business plan: A comprehensive business plan does not have to be over 50 pages long, as long the simple document helps the potential buyer understand the industry in more detail and how the business will continue to grow and make profits. Of course the projections have to be accurate and backed by proper data or ‘inside information’.
Overall, a business plan is a good supplementary document to provide the prospective buyer to build their confidence of taking over your business. A well drafted business plan gives a good sense of assurance to the buyer that you have thought through carefully your business for sale. Ultimately it gives more credibility to your business valuation too.
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