Here are eleven time-tested tips that every seller should keep in mind when selling his/her business.

1. Price Realistically. Do not overprice or under-price your business. If you price too high you will scare away qualified buyers. When overpriced, many buyers will not make you an offer for fear of offending you. The longer your business is on the market, the greater the chance of your employees, suppliers and customers finding out. Look for comparable sales and price accordingly.

2. Prepare a business offering package, include all the information that buyers need to see such as leases, P&Ls, tax returns, etc. Buyers will lose enthusiasm waiting for these items to be produced.

3. Bring deferred maintenance up to date before putting your business on the market. When buyers see items that need fixing, they often wonder about the condition of things they canāt see.

4. Prepare a purchase agreement before finding a buyer. Then you can fill in the blanks when you have a deal. Attorneys are often very slow in preparing agreements and the buyerās enthusiasm may evaporate as a result of delays.

5. Look for buyers in as broad an area as possible. Donāt depend on your local newspaper to produce leads. Only a fraction of potential buyers are reading that paper at any particular time. The way to get optimal price is to have as many qualified buyers as possible.

6. Qualify the buyers immediately. You need to know about their financial strength and business skills before you provide them with highly sensitive information about your business or spend your precious time with them.

7. Make sure that your location and equipment leases are transferable before you look for a buyer. Many deals have fallen apart because the lessors refuse to assign a lease. If your remaining lease is short, negotiate a new lease before offering the business for sale.

8. Agree on a sale price and terms with the purchaser before providing access to your financial records. It is extremely important that a buyer have ample opportunity to examine all aspects of your business and that all disclosures are made. These steps help both sellers and buyers to avoid lawsuits.

9. Make sure you state every agreement of the transaction in writing, including contingency removals. People quickly forget things that arenāt written down, resulting in arguments and lawsuits.

10. Require a substantial deposit. When you have reached an agreement with a buyer, the deposit should be held by a neutral escrow holder to limit your liability.

11. If you financing part of the sale, be sure to follow the correct procedures in order to protect your note. This includes filing of a UCC-1 statement with the state and execution of any necessary promissory notes and security agreements.