Our step-by-step guide to selling a small business by owner

There are many benefits to working with a business broker when selling your business. We can help you market your listing, qualify buyers and get the most amount of money for your business. Not to mention, we manage the entire process, taking all the stressful tasks off your to-do list so you can focus on other things.

However, we understand that there are instances in which you might prefer to sell your small business “by owner” — or without the help of a broker. It’s tough but entirely possible, and we’re going to walk you through the steps.

How to sell a small business by owner

Here’s how to sell your business by yourself:

• Make sure you’re up for the challenge — Selling a business is a lot of work, so make sure you know what you’re getting into before you embark on this process. Look into all the benefits (and relatively low cost, for the value) of working with a professional broker before you finalize your decision.
• Determine your business’s value — You should know what your business is worth before you price it for sale. Fully understanding its value and what a buyer can get from it will give you leverage in negotiations. Tip: Even if you’re selling your small business by owner, you should consider hiring a professional appraiser to perform a valuation.
• Consider selling to a competitor — Selling to a competitor can be one of the easiest ways to sell a business, as it relieves you of having to market your listing. Plus, you can rest assured that your business will be in good hands, as your competitors understand the industry and will know how to run your business.
• Gather your records — Documentation is one of the biggest roadblocks that can hold up a sale. Collect all business records, process documentation and anything else potential buyers will want to see ahead of time so this doesn’t slow down the sales process later. (Note: This is another benefit of working with a professional broker; they know all the documentation needed and will help you prepare it before potential buyers start asking.)
• Market your business for sale — This is the step where you finally let the public know that your business is available to buy. If you’re not selling to competitors, you can advertise your company on business sale websites or tap into your network to find potential buyers.
• Perform due diligence on potential buyers — You have to make sure that bidders can afford your business. They will also want to review your documentation to ensure that the business is performing as advertised.
• Negotiate the sale price — The final step before contracts are signed: You’ll have to come to an agreement on the final price. Your buyer may be willing to pay your asking price, or they might want to lower it based on what they learned in due diligence. Either way, prepare to negotiate before you sell.

If you change your mind about selling by owner, call Lion Business Brokers

We understand that there are certain benefits to selling a small business by owner, but that’s not the best option for everyone. We bring years of experience and proven strategies to the table that can help you immensely throughout the process. From managing all paperwork to negotiating prices, Lion can take some of the most stressful tasks off your plate.

Call us today for a free consultation and to learn more about the benefits we offer.