1.      Continue to make money.

2.      Get your financial house in order

 a.  Review monthly reserves and accruals. Typical issues include:

             - Allowance for bad debt

             - Vacation accrual

             - Deferred tax

             - Taxes payable

             - Inventory reserves

             - Warranty reserve

 b.   Have your financial statements audited.

3.      Collect past-due accounts.

4.      Sell non-operating assets and excess/obsolete inventory.

5.      Make sure federal, state, payroll, and sales tax filings are accurate and up-to-date.

6.      Spruce up the office premises. Make any needed repairs and paint touch-ups.  You never get a second chance to make a first impression.

7.      Resolve legal disputes. The buyer will not inherit your litigation without a significant cost to you.

8.      Make sure your contracts are assignable so they’re easily transferable to a buyer in a sale of your assets. It is preferable if they are assignable without consent.

9.      Execute non-compete contracts on your key employees and confidentiality agreements with all employees.

10.  Make certain your patents, licenses, and trademarks have all been filed properly.

11.  Golden Rule for Sellers: Operate your business as if there will be no transaction.