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Forbes
5 days ago
- Business
- Forbes
3 Essential Questions To Ask Before Selling Your Business
What if a buyer showed up tomorrow with a serious offer to buy your business? Would you be ready or ... More would you panic? What if a business buyer showed up tomorrow with a serious offer to buy your business? Would you be ready or would you panic? Most small business owners say they'll sell 'someday.' But someday has a funny way of becoming urgent. A burnout. A life shift. A market dip. Or an unexpected email from a serious buyer. The truth is, big exits don't wait for perfection, they reward preparation. If you're a freedom-focused business owner with even a whisper of a future exit in mind, the time to get clarity is now. And it doesn't start with business brokers or complex spreadsheets. It starts by asking yourself the right questions. Below are three of the most important ones, designed to bring you out of fuzzy thinking and into powerful action. Question 1. How Much Time Do You Really Have To Prepare For Your Exit? This is the question most small business owners skip until it's too late. They assume they'll sell in a few years, maybe after they hit a revenue milestone or launch that one last project. But life doesn't wait. Burnout creeps in. Health issues show up. Or the opportunity of a lifetime knocks earlier than expected. It shapes what you can still fix, how confident you'll feel when selling your business, and the kinds of offers you'll be able to attract and negotiate. So instead of drifting toward an exit someday, anchor your thinking today: Why this matters: Many owners think they have years, but urgency often shows up fast. Buyers don't wait while you clean up your books, document systems, or finally delegate sales. The sooner you define your timeline, the more control you gain over the process. Question 2. What Is Your Business Worth Today And What Do You Want To Sell It For? Ask 10 owners what their business is worth, and you'll get 10 guesses. None backed by real data. Ask what they want to sell it for, and the answer is often a gut number tied to pride, how hard they worked or retirement goals. This is where the 'value gap' lives: the space between what you think your business is worth and what a buyer would actually pay. Here's how to bring clarity to your numbers: Why this matters: Knowing your business's value isn't just about the final price tag. It's a mirror reflecting how your business performs, how de-risked it is, and how attractive it is to outsiders. Your revenue doesn't define your value. Your systems, structure, and owner-independence do. So if your dream number feels far away, that's not a reason to quit. It's a reason to start optimizing now. Question 3. How Exit-Ready Is Your Business Right Now? Many founders focus on growth and profitability, but skip over sellability. They assume a high-revenue, well-known business will sell easily. But business buyers look for different things. They care less about your genius, and more about your systems. They want to know: can this business thrive without you? Valuable doesn't always mean sellable. That distinction is what separates an impressive business from a big exit. To assess your real exit readiness, ask: Why this matters: Buyers aren't just looking at how much money you make. They're evaluating how risky it would be to take over. The more your business runs without you, the more attractive—and valuable—it becomes. Exit readiness is a spectrum, not a yes-or-no question. Every improvement you make adds leverage, even if you're years away from selling. Final Reflection: If a Buyer Showed Up Tomorrow, Would You Be Ready? Let's imagine this scenario: You get an email from someone who wants to acquire your business. They're serious. They ask for your numbers, team structure, contracts, churn rate, and delivery process. Do you freeze, or flow? This one reflection cuts through the fluff faster than any spreadsheet: If a buyer showed up tomorrow, how ready would you truly feel to share your numbers, answer their questions, and let go? This isn't about being perfect. It's about being prepared. Because big exits don't just happen when you want them to. They happen when you've made them possible. Whether your ideal exit is two years out or ten, the time to start preparing is now. Not in a reactive scramble when you're tired or out of options, but from a place of clarity, leverage, and choice. If this article sparked something, don't let it end here. Use your answers to these questions as a roadmap. Turn insight into action, one small improvement at a time. Because you don't just deserve to sell your business, you deserve to sell it on your terms.
Forbes
16-07-2025
- Business
- Forbes
6 Steps To Perfectly Time Selling Your Small Business
What if you could sell your business for life-changing money... but only if you planned for it now? What if you sell your business for a life-changing amount of money... but only if you planned for it now? What if most owners don't miss their chance to sell their business because their business wasn't good, but because they simply ran out of time? How long does it take to sell a small business, really? Here's the truth: selling your business isn't an event. It's a process. And the process takes longer than most business owners realize. A rushed sale often leads to harder negotiations, a lower price, and regret after the deal. But a strategic exit, one that's prepared for, can be worth 2 to 3 times more. This article shows you exactly how to plan the timing of your business exit timeline, from the moment you think 'maybe it's time to sell' all the way to closing the deal, cashing the check, and walking into your next chapter with clarity and confidence. How Long Does It Take To Sell A Small Business? You've probably heard this statistic: it takes around 6 months to sell a business once it's listed. And that's technically true. But here's what most people forget: that 6-month clock only starts after your business is exit-ready. And getting exit-ready takes time. Translation? If you want to sell in the next 1 to 3 years, your exit clock has already started ticking. Step 1: Understand What 'Exit-Ready' Actually Means Most businesses aren't ready to sell, even if they're profitable. Business buyers don't just look at top-line revenue. They look at transferability, consistency, and risk. Before you even think about listing your business for sale, ask yourself: If you answered 'no' or 'I'm not sure' to any of the above, that's your cue. You're in the prep zone, and the sooner you start, the more leverage you'll have. Step 2: Choose What Matters More: Speed or Value Here's where things get personal. Are you in a rush to sell? Or are you willing to wait for the best possible deal? Think of it like real estate. You can sell a fixer-upper house quickly. But if you renovate, stage, and list at the right time? You'll get a much higher offer. Same goes for your business. Step 3: Work the Exit Backwards Once you're clear on your goals, it's time to reverse-engineer your timeline. Use this 3-part framework: This is your foundation. Without it, everything else gets harder, especially due diligence. This is where you shape the story buyers want to hear: consistent income, growth potential, and low founder risk. This is your pre-launch window. Everything should be polished, ready, and proactive. Step 4: Enter the Sales Phase Like a Pro Now your business is listed. The next ~6 months will be full of meetings, documents, negotiations, and emotional swings. Here's what that looks like in practice: The best way to prevent issues? Be 10 steps ahead and document everything. Treat the whole process like a project. Show buyers you're serious, professional, and trustworthy. Step 5: Prepare Yourself, Not Just the Business No one talks about this enough, but selling your business is emotional. For many owners, this isn't just a financial transaction. It's the end of an era. You're not just letting go of an income stream. You're letting go of an identity. A team. Clients. A daily rhythm. And often, a purpose. So ask yourself: The most successful exits aren't just big-dollar exits. They're emotionally clean too. When you know who you are beyond your business, you're less likely to sabotage the deal or second-guess the terms. Step 6: Don't Wait Until You're Ready, Start Before That Here's the biggest mistake most entrepreneurs make: They wait too long to get the exit process going. They wait until they're tired, burned out, or facing a health scare. They wait until revenue declines. Or team morale drops. Or their industry shifts. By the time they list, the business is no longer in its prime and buyers can tell. You don't have to be ready to exit today. But you do have to start preparing for that future, especially if you want options, leverage, and a higher sale price. And that's the real win: freedom of choice. Final Thoughts: Own the Timeline or Be Owned by It Here's what most people don't understand about exits: If you don't control your timeline, someone or something else will. That could be burnout. A surprise offer. A family emergency. Or an economic shift. But if you start now -even if selling is years away- you'll be ready on your terms. You'll sell from a place of clarity, not desperation. And that makes all the difference in your valuation, your peace of mind, and your next chapter. Next Steps If you're even thinking about selling in the next 1 to 3 years, here's what to do now: Because knowing how long does it take to sell a small business and planning your business exit isn't just smart. It's the most profitable move you'll ever make.
Entrepreneur
17-06-2025
- Business
- Entrepreneur
3 Signs You Are Ready to Sell Your Business
It's not always simple to recognize when it's time to move on. Here are three signs to look for to help you make the decision. Opinions expressed by Entrepreneur contributors are their own. Every business owner knows the day will come when they either sell their company or pass it on. What's harder to accept is when that day is today. Waiting too long can mean declining profits, dwindling energy or a missed opportunity to maximize your exit. But leaving too soon can stir doubt — what if the next owner hits record growth? While there's no perfect formula for timing your exit, there are signs. If you're starting to wonder whether it's time to move on, these three signals may offer the clarity you need. Related: When Should You Get Your Business Ready to Sell? The Best Time to Start Is Now — Here's Why. 1. You feel drained instead of driven Remember when you used to wake up energized by possibility? When you loved solving customer problems or brainstorming with your team? If that drive has turned into dread, take notice. Many founders dismiss this phase as temporary burnout. But if you're going through the motions day after day — uninspired and emotionally checked out — it's not just a rough patch. It's a sign that your time in the business may be up. Hanging on to a company you no longer love doesn't just affect your mood — it chips away at the business's value. Culture suffers. Growth stalls. And by the time you decide to sell, it may be worth far less than if you had exited earlier. 2. You've stopped getting excited about growth New partnership? Big client? Expansion opportunity? If those words once lit a fire in you but now just sound like more work, you're not alone. When you no longer feel pulled toward opportunity — and instead feel trapped by it — it's a strong indicator that your motivation has run dry. And motivation is fuel. Without it, growth halts and momentum fades. Declining revenue is the death knell of a strong sale. Buyers pay for potential, not stagnation. So if you feel like you have nothing more to give, don't wait for the numbers to reflect that. Move before they do. 3. Your business is booming Ironically, one of the best times to sell is when everything's going right. Profits are strong, clients are happy, and you're at the top of your game. So why would you even consider leaving? Because that's exactly when your business is most attractive to buyers — when there's still room to grow. Smart owners don't wait to "ride it out a few more years." They sell while the company is on the upswing, not after it peaks. We worked with a client who planned to sell in 24 months. But when the time came, he delayed. Again and again. By the time he was ready, his energy was gone, performance had slipped and the business sold for far less than it could have. Waiting for the "perfect" moment is how many owners miss the best one. Related: Sell Your Company When You Least Expect It — How to Properly Scale and Sell Your Business What to do if you see the signs These signals are emotional and internal — but your next step should be grounded in data. If any of these signs resonate, get a business valuation or exit assessment. Know what your company is worth today and what's at stake if you wait. Most importantly, don't wait until you're exhausted to begin the process. Selling a business takes time and energy — two things in short supply once burnout sets in. You don't need a crystal ball to time your exit well. You just need to trust your instincts — the same ones that helped you build this business in the first place.
