Discover How to Sell Your Business Yourself

When it comes time to sell your business—or buy a new one—there are several routes to take. Many people find that a certified business broker is someone who can really help clarify many aspects of the transaction. Brokers often have training and experience that will pay dividends for you that by far outweigh their fees or commission. However, it’s not written in stone anywhere that you need a broker, and you may not find one whose expertise you’re willing to pay for. If the buy and sell game is one you’ve played before it might just be time to give it a go without the training wheels.

To make sure the ride goes smoothly, it’s important to pick up the slack—meaning that while a broker is not entirely necessary, the work a good broker does to prepare for a sale is. So, if you’re long on time and know-how, and maybe a bit short of cash, managing your own business sale can have some real advantages—if you cover your bases right.

The first part of selling a business yourself is doing your homework. Put together a clear picture of the actual worth of your business. A business appraisal expert can help, but is not essential. What you will need to do is have any business property officially appraised and put together a clear picture of the business’ finances. Show how your business model works—including all expenses and revenues.

A business’ earnings are always a good selling point, but are not the end all and be all of a business’ market value. Clarity and transparency throughout the business’ dealings are also important. Potential buyers will want to see clear records of the business’ financial history. The more that you can demonstrate your business comes without any hidden debts or expenses, the more comfortable a buyer will feel—regardless of the actual earnings. Remember—many of your buyers may have a fresh idea or some extra capital that can leverage a low-revenue business that was run cleanly into a real cash cow.

Good bookkeeping alone won’t make the sale, but it will certainly help. Towards that end, take the time to tie up the loose ends within your business. Have someone come in for that past-due elevator inspection, get a professional in for that old wiring, and be sure to clear up any long-standing problems with your clients and partners before the time comes to sell. A clean slate is a great bargaining chip—the less that goes into escrow, the higher your asking price and profits.

Now that your business is squeaky clean you can start looking for buyers. One of the best places to look is at your business itself. Put up a For Sale sign and see who comes in. If you’re running a pet shop, for example, potential buyers may be people who are already your customers. Running a business takes a lot of work, so one way to increase your likelihood of finding a buyer is to focus on the people that are interested in the type of business you run.

Apart from advertising at your business site, trade shows can be a great place to shop your business. Shows that focus on small businesses and general or your area of expertise specifically can both turn up surprising results. While many would prefer to sell to another business owner, don’t forget to check with banks and holding firms. This is another point in the process where having plenty of records to give a clear picture of your business’ past is quite handy.

Lastly, don’t be afraid to get some advice from a third party. While the decision to sell ultimately rests with you, it may be good to temper your instincts with another opinion. This is one of the responsibilities a broker normally assumes that you will need to compensate for if you intend to go it alone. Keep in mind that while conventional wisdom urges sellers to shop around, newer thinking on sales dynamics suggests that this may not always be the case.

When you approach a sale, have your top and bottom prices in mind, and don’t be afraid to take a good offer for fear of missing a better one. Remember, you may not get another offer to match the one you want in front of you, and business is about the gains you can actually realize—holding out for a Platonic sale price is a recipe for disappointment.