Considering Selling Your Small Business?

Are you thinking about selling your small business? I probably thought about it for 10 years before I actually listed it.  I wasn't necessarily ready to sell 10 years prior, I was just sorta planning...what do I need to have in order?  When is the best time?  Should I sign another lease and go hard for another few years or try and sell now?  This is just how my brain works 😆

Selling is a MAJOR decision, one that’s the result of years of relentless hard work and dedication. Whether you’re considering selling soon or just want to be prepared for the future, getting things in order now can make all the difference when it’s time to make the move!

Here are the top 5 things you should have in place before you think about selling your small business:

1. Organize Your Financial Records and Know Your Value

First things first—let’s talk money $$$. Before you even think about selling, make sure your financial records are organized and up to date. Buyers will want to see clear and accurate financials for at least the last 3-5 years, including income statements, balance sheets, and tax returns.

It’s also a good idea to get a professional valuation to understand what your business is really worth. This not only helps you set a fair asking price, but it can also highlight areas where you can boost value before you sell.

2. Streamline Your Operations

You will hear me say this over and over and over again.  Buyers love businesses that can run smoothly without the owner being involved in every little detail. That means having your processes, procedures, and systems documented and easy to follow.  

Take some time to create or update your standard operating procedures (SOPs), employee manuals, and training materials. The goal is to make sure your business can keep running like clockwork, even if you’re not there. It’s a big plus for buyers who want to step in with confidence and don't necessarily want to create themselves a full time job.  I know this was one of the main reasons my business sold. I was only spending about 12-15 hours per week working in my business and it was very profitable  It was seen as an investment by potential buyers.

3. Build a Strong Management Team

A solid management team is one of your biggest assets when selling. Buyers want to know that the business will keep thriving even after you step away.  I had the best manager and management team. Having a strong, supportive team is essential.  Look around you...how would you evaluate your key team members?  

Start delegating responsibilities and building a team that can handle the day-to-day operations. This might mean promoting from within, hiring new talent, or offering leadership training. A capable team ready to lead adds SERIOUS value to your business.

4. Secure Your Customer and Supplier Relationships

Your relationships with customers and suppliers are key to your business’s success, so make sure they’re solid before you sell. Buyers will want to see that you have loyal customers and stable supplier contracts that can continue after the sale.  Did I mention I also had the best customers?  We spent so much time and money ensuring we built customer loyalty...it was paramount to our success.

Review and update your contracts with key customers and suppliers to make sure they’re current and transferable. If you can, lock in some long-term agreements to provide stability for the new owner. A loyal customer base and reliable suppliers are big selling points.

5. Make Sure You’re Legally and Regulatory Compliant

Last but definitely not least, make sure your business is in full legal and regulatory compliance before you sell. This means having all your licenses, permits, and certifications up to date, and ensuring you’re in good standing with any local, state, and federal regulations.

It’s a good idea to work with a legal professional to review your contracts, intellectual property, and other legal obligations. Taking care of any potential issues now can prevent headaches during the sale process.

If you are seriously considering selling your business and want to chat, reply to this email and we can hop on a 20 minute FREE coaching consultation.  I'd love to know if I can help!