Most business owners know how to run their operations. Otherwise, they wouldn’t create potential value for someone else to buy.   

Still, many business owners haven’t put enough thought into how to prepare for the sale of their ventures. Making decisions well ahead of time — sometimes years, in fact — helps business owners maximize the potential value of their enterprises.

One of the most common issues that arises is that owners haven’t created businesses that can operate without them. If the owner is bigger than the business, the chances of selling that business without the owner being retained for a long time is unlikely.

Put key employees and systems in place and empower them to operate the business efficiently and effectively without you running the show to maximize value and create a larger buying pool. Implement this strategy well in advance of a potential sale.

Another important part of preparing for a sale involves maintaining clear and accurate financial statements. Work with your financial officer or accountant to ensure accurate and timely financial statements are available to a potential buyer.

Since most businesses are sold on the value of cash flow or EBITDA — earnings before interest, taxes, depreciation and amortization — making good financial decisions that affect this number is vital.

Think ahead and understand how to maximize cash flow to increase the value of a business when it’s time to sell. Clean up the balance sheet and remove non-business related assets or assets that might not be included at the time of a sale.

Overlooking this step could cause problems when a potential buyer undertakes financial due diligence.

If your business relies on only a few customers or depends on a certain industry segment to remain vibrant, look at other ways your business can generate income without relying on a small customer base or single segment. Otherwise, your business could attract fewer potential buyers and, in turn, sell for less.

These are a few of the major preparations involved in selling a business. There are many other things to consider and discuss.

With a little planning, these preparations and others can be addressed well in advance of the decision to sell a business. It’s important because maximizing the value of a company could be one of the biggest decisions an owner makes.