What makes a business worth buying? Here are 10 signs of a fundamentally strong small business, including cash flow, customers, employees and systems.

1. Consistent Cash Flow

Consistency reduces risk.

2. Repeat Customers

Customers who return are valuable.

3. Strong Employees

Good employees make the transition easier.

4. Low Owner Dependence

The business shouldn’t collapse when the owner leaves.

5. Good Reputation

A strong reputation is an asset.

6. Diversified Customers

No single customer should control your destiny.

7. Good Suppliers

Stable suppliers protect margins and operations.

8. Reasonable Capital Requirements

You don’t want every year’s profits going into new equipment.

9. Documented Processes

Systems make businesses transferable.

10. Opportunities for Improvement

A good business with fixable weaknesses can be a great acquisition.