What to Know Before You Sell Your Business

Selling your business is something that shouldn’t be taken lightly. It’s a tough decision that many business owners have to make over the lifecycle of their company and can be a pretty emotional time. However, even when those emotions are running in the way, you should ensure that you think logically and reasonably about this decision before you make it. That’s the only way that you’re going to make the best decision for you.

Thankfully, down below, you’re going to find the top things that you need to know before you sell off your business. Keep reading to learn some more and determine whether or not this is the right step for you.

  • Is Your Business Ready for Selling?
First off, you’ve got to determine whether or not your business is ready for the selling process. It’s recommended that you take at least two years before you plan to put your business on the market to prepare for that time. It’s impossible to put together everything a month or two before you plan to sell your company. You should aim to be able to provide two to three years of tax returns that show the maximum profitability of your company.

  • How Is Your Business Going to Be Valued?
You should think a lot about how the buyer is actually going to see your business’ value. If you load your business with tons of tax write-offs, then your company can actually seem a lot less profitable and therefore of less value for the potential buyer.

  • Who Is Going to Be On Your Team When You Sell?
You want the right people on your team to bring you through the sales process and get you the best deal for your company. Think about whether or not you need an accountant, a business broker, an attorney, and an appraiser. These are all people who would be able to help you get the best deal for the value of your company. It’s much better than going in it all alone!

  • Is Now the Right Time?
You might be thinking: “It’s a really good time to sell my business. Performance is low and the money’s just not coming in like it used to!”. It’s a fact that a lot of sellers will wait until their business is declining in performance to sell. However, that’s the exact opposite of what you should be doing. Be sure to think like an entrepreneur in this setting, rather than as the business owner. It’s much more beneficial for you to sell your business when you’re performing like crazy rather than on the decline. You’ll get a lot more money for the business that you can invest in other, more profitable ventures.

  • Is the Market in The Right Conditions?
Of course, one of the first things you should think about when selling your business is whether or not the market is in the right conditions for you to get a great price. For example, if you had a home improvement business in 2006, that market might have seemed great for selling. However, if you had that same business in 2008-2010 during the Great Recession, you wouldn’t have gotten many great offers.

  • What Changes Are Coming Over the Horizon and Can You Handle Them?
Always look forward three or four years into the future to think about what trends and technologies are going to be making waves in your industry. If you don’t think you can keep up with all of these trends, then it might be best to sell off the business and let someone else handle it.

  • What Are the Chances That Your Business Will Thrive Without You?
You really want to think about whether or not your business is too dependent on you or one main customer. If the chances that your business is not going to thrive without you there, then that buyer is most likely going to go to another company and make an offer on one that’s less dependent on the owner or one customer.

All of these things and more are factors you should think long and hard about before you make your decision to sell off your business. That’s because once you’ve signed on the dotted line, your business is gone forever and you have to move on. It’s best to get a great value for your company when you can.


A traveller by day and reader by night' is how I would sum up my life. My wanderlust led me to quit my cushy job at 28 and finally embark on a journey around the world. Since then, I have lived in many countries and soaked in as many books as possible during my travel journeys. Among them, the "Book of Mirdad" is still my personal favourite and holds a special place in my heart. My progression towards writing was inevitable and happened quite naturally. I have been writing for a few years now an...

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