10 tips on how to list a business for sale (2023)

If you have a business, you know you're not going to work forever. Perhaps you are approaching retirement age. Or maybe you are thinking of switching to another company.

Regardless, it's important to develop an exit strategy, even if you feel like you're years away from making a decision. The process can take months or even years.

Company sales fell
22 percent in 2020. So what should you know about creating a due diligence checklist for selling a business?

Tip: Download a FREE guide to help list businesses for sale - Click here

1. Build to sell

Essentially, this means developing an exit strategy before attempting to sell. Listing your business for sale is not the first step in this process. Long before you do that, you need to know what your plans are.

For example, are you retiring or changing companies? Are your ledgers organized and ready? What does your business need to be salable and look like a promising business to future owners?

2. Know the best selling hours

Before putting your business up for sale, take a look at the market to time your sale correctly. If you're selling your business because your business or industry isn't profitable, you probably won't find many interested buyers.

This can be a challenge, as
sell a business it can be such a long process. It may take a good deal of forethought or even professional consultation to give you a better idea of ​​your chances of success in terms of timing. It's about making sure you're ready to sell when others are ready to buy.


3. Enrich your business

Before you start planning your exit, you need to make sure you look great - both on paper and in person. Think about what customers see when they walk through your door.

Make sure your business visit is comfortable and pleasant. Provide great customer service and keep things organized. Remember that any potential buyer will experience your services as a customer first, so they must be impressive. And don't forget, this includes how your phone is serviced and, just as important, your online reviews.

4. Know why you want to sell

Surprisingly, there are interview processes that go along with selling your business. Potential buyers want to know why you're leaving, so it's important that you know how to articulate this well.

Buyers are likely to become discouraged when discussing selling your business due to lack of success or a market downturn. If you're looking for a new business or thinking about retiring, approach it from that angle. It's always a good idea to have an answer ready in your exit strategy framework.

5. Make a succession plan

Just because the company is changing hands doesn't mean it's in completely new hands. Most people who buy a business don't want to start from scratch with new employees or key employees.

Instead, if new owners are interested, make a succession plan for your employees, but keep it strictly confidential. When employees find out that the company is for sale, do they worry that the company will go bankrupt, or that they won't like the new owner, or that they won't receive the same benefits they currently receive, or I know friends who worked at a company long ago. years and when there was a change of ownership they were replaced by younger, cheaper staff and I can't do this to myself.

If you have a manager or other key employees that the business needs to retain, they can be a huge asset to new owners as they learn to run the business. This is a big part of an exit strategy for business owners that is often overlooked.

6. Learn how to create your online listing

As with many other things, listing and describing your business for sale online is an art. If you get it right, it can attract a lot of attention and increase the chances that you'll sell your business quickly and profitably.

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On the other hand, if you don't know how to sell your business idea in an online listing, you probably won't get much attention. People will fire you, jump to judgment, or not even know how to reach you.

You also want to describe your business as for sale so a competitor or local employee doesn't know it's for sale.

Remember, your online listing is the first impression of your business to potential buyers.

7. Organize your paperwork

Simply put, there are many financial, legal, and marketing documents needed to sell your business. Tax documents are just the beginning.

A professional can help you create a business buying and selling checklist that includes all the necessary paperwork to keep things legal and organized.

8. Increase your presence

There are many tips and tricks to get people to see your business listing online. This usually involves knowing how to list your business in various categories.

For example, if you sell a cupcake bakery, you might want to learn how to list your business in grocery and event catering. Most online business selling platforms have categories to help narrow your search.

Using these tools effectively is the best way to get more potential customers to view your listing.

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But these tools are far from the only way to increase your visibility when it comes to your business listing. Talking to a marketer can provide additional tips on how to market your business.

9. Get a company review

Before you start tying up any loose ends, get a company rating by a professional. This will give you a better idea of ​​how to calculate the value of a business for sale.

Different types of professionals can help you get a better idea of ​​how company valuations are calculated. This includes accountants, bankers, business brokers and mergers and acquisitions consultants. It's best if you choose a professional who knows local lower-middle class businesses for sale, the ins and outs of their business and industry, and who has already conducted business valuations.

This assessment will also give you an insight into what you need to adjust or change before listing your business on the market.

10. Talk to an M&A consultant

One of the best things to do as part of planning your exit strategy is to hire a mergers and acquisitions consultant. These mid-market brokers and professionals excel at helping mid-market companies through all stages of buying or selling a business and enhancing growth through acquisitions.

They can help create an excellent M&A exit strategy that benefits everyone involved. This is especially true if you so desire.
List your business for sale California.

California has many industrial, tax, environmental and other business regulations that do not apply to other US states. If you are looking for professional help and your business is located in California, Get the right professional to help you.

setting a can help you create a wide market for your business. An M&A broker will also provide you with all the necessary information, including how much tax you will have to pay during the sale process.

(Video) How To Sell Your Business For Millions

If you are a...businessman to retireIf you want to break out of your lower-middle-class California business, here are five tips to get you started:

1.Don't wait until the last minuteStart planning your exit.The process of selling a middle market company can take a long time, so it's important to start early.

2.Have a clear idea of ​​what you want to get out of the sale.know your goalsand what you are willing to trade.

3.Choose the right type of buyer.Not all buyers are created equal, so do your research and find the right one for your business.

4.Be prepared for a lot of due diligence.So buyers want to know everything about your company. So be prepared to provide documentation and answer questions.

5.Be flexible with the terms of the contract.It's important to be open to negotiation to get the best possible deal for your business.

Rogerson Business Services, also known as California'sBusiness broker for the lower middle classit is athat shut down hundreds of lower-middle-class businesses in California. We are committed to helping our clients maximize value and achieve the results they desire.

We have a deep understanding of the California market and an extensive network of buyers that allow us to achieve the best possible price for our customers. In addition, we offer full support throughout the entire process, from initial assessment to post-close onboarding.

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Our hands-on approach and commitment to our clients' success sets us apart from other companies in the industry. If you're thinking about selling your midsize business, we'd love to help you navigateProceduresand reach your goals.

If you've decided to value your midsize business and then sell it, or you're not ready yet,fang hier an, or call toll free 1-844-414-9600 and leave a voice message with your question and get a response within 24 hours. The negotiation team is led byAndreas Rogerson, Certified M&A Advisor, will personally review and understand your pain points and prioritize your request with Rogerson Business Services, RBS consultant.


How do you sell your business tips? ›

If you're considering selling your small business, consider these seven steps to stay on the offensive.
  1. Determine the value of your company. ...
  2. Clean up your small business financials. ...
  3. Prepare your exit strategy in advance. ...
  4. Boost your sales. ...
  5. Find a business broker. ...
  6. Pre-qualify your buyers. ...
  7. Get business contracts in order.
Jan 3, 2014

What is the easiest way to sell my business? ›

11 Key Steps to Sell Your Business
  1. Sort Out All Accounting Records. ...
  2. Hire a Valuation Expert and Find Out Your Business Worth. ...
  3. Work Out an Exit Strategy. ...
  4. Market Your Business. ...
  5. Put Your Business on the Market. ...
  6. Sift Through Prospective Buyers: Find the Perfect Business Owner. ...
  7. Respect The Due Diligence Process.
May 4, 2021

What are 2 key things you should do when you are selling your business? ›

Start planning the sale of your business early to make the most out of the deal.
Here are some other tips to consider before the deal closes:
  • Get potential buyers to sign a non-disclosure agreement.
  • Work with your business advisory team to make sure you're not disclosing more than you should early in the process.
May 4, 2021

What are questions to ask in selling a business? ›

Here are my top 4 questions for a business seller to ask a potential buyer:
  • What is your reason for making an acquisition? ...
  • How will you finance an acquisition? ...
  • What is your due diligence process? ...
  • My favorite: Can you put me in touch with the owners of companies you acquired?
Mar 3, 2014

What are some good selling tips? ›

Effective sales techniques: 7 tips for more consistent sales
  • Be systematic about generating leads. ...
  • Know your sales cycle. ...
  • Know your numbers. ...
  • Actively seek referrals. ...
  • Focus on securing appointments. ...
  • Get ready for objections. ...
  • Follow up and listen.

Can you give me some tips for business? ›

These 13 tips offer tried-and-true methods for scaling up, no matter what your business does.
  • Hire the right people. ...
  • Focus on established revenue sources. ...
  • Reduce your risks. ...
  • Be adaptable. ...
  • Focus on the customer experience. ...
  • Invest in yourself. ...
  • Always think ahead. ...
  • Boost your customer service.
Feb 21, 2023

What is the fastest way to value a small business? ›

How do you value a business?
  1. Assets. The asset valuation method is suitable for businesses with sizable tangible assets. ...
  2. Price/earnings ratio (or the multiple of profits) ...
  3. Entry cost. ...
  4. Discounted cashflow. ...
  5. Comparables. ...
  6. Industry rules of thumb.
Sep 9, 2020

What is a small business worth to sell? ›

Businesses where the owner is actively-involved typically sell for 2-3 times the annual earnings of the company. A business that earns $100,000 per year should sell for $200,000-$300,000. This is consistent with most listings on BizBuySell, a small business brokering site with thousands of companies available for sale.

How much is a business worth with $1 million in sales? ›

Business valuation FAQ

The exact value of a business with $1 million in sales would depend on the profitability of the business and its assets. Generally, a business is worth anywhere from one to five times its annual sales. So, in this case, the business would be worth between $1 million and $5 million.

How can I value my business for sale? ›

Determining Your Business's Market Value
  1. Tally the value of assets. Add up the value of everything the business owns, including all equipment and inventory. ...
  2. Base it on revenue. How much does the business generate in annual sales? ...
  3. Use earnings multiples. ...
  4. Do a discounted cash-flow analysis. ...
  5. Go beyond financial formulas.

What should you not do when selling a business? ›

7 Mistakes to Avoid When Selling Your Business
  1. Not Being Prepared. ...
  2. Not Understanding Where A Company's True Value Is. ...
  3. Not Taking Advantage of Professional Help. ...
  4. Not Being Honest or Misrepresenting a Business in the Selling Process. ...
  5. Pricing Incorrectly When Selling a Business. ...
  6. Not Pre-Qualifying Buyers.
Aug 2, 2021

What are the first three steps of selling a business? ›

The textbook 7-step sales process
  • Prospecting. The first step in the sales process is prospecting. ...
  • Preparation. ...
  • Approach. ...
  • Presentation. ...
  • Handling objections. ...
  • Closing. ...
  • Follow-up.

What are the three most important business questions? ›

The most important business is to do that person well because we are sent in this world for that purpose alone.” Thus the hermit explained the answers to the King's three questions.

What should I know before selling my business? ›

8 Essential Things to Consider Before You Sell Your Business
  • The timing of your sale.
  • Your emotional preparedness.
  • Why you want to sell (and for whom)
  • What a potential buyer in your market wants.
  • Your business's value.
  • Your financial prospects.
  • What you're going to do next.
  • Whether you're truly 'finished' with your business.
May 21, 2019

What are the 10 selling techniques? ›

10 Surprisingly Effective Sales Techniques, Backed by Research
  • Sell to Your Buyer's Situation (Not Their Disposition) ...
  • Disrupt Your Prospect's Status Quo. ...
  • Introduce Unconsidered Needs. ...
  • Tell Customer Stories with Contrast. ...
  • Avoid the Parity Trap in Sales Conversations. ...
  • Make Your Customer the Hero.
Apr 1, 2021

What are the 5 selling strategies? ›

5 Sales Strategies for Businesses
  • Define your buyer.
  • Tell a story.
  • Target a niche market.
  • Sell your brand.
  • Focus on internal growth.

What are the five P's of successful selling? ›

The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE. Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments. Read on to find out more about each of the Ps.

What are the 5 keys of business success? ›

5 Keys to Driving Business Success
  • Recognise your overall employee strengths and weaknesses. ...
  • What are your goals to achieve business success? ...
  • Establish a link between what you have and what you want. ...
  • Find and fill gaps. ...
  • Analyse and refine.

How do you attract customers? ›

5 Tips for Attracting New Customers
  1. Identify Your Ideal New Customers. ...
  2. Use Direct Response Marketing to Attract Customers. ...
  3. Give Something Away to Entice New Customers. ...
  4. Give Your Business a Face Lift to Increase Sales. ...
  5. Get The (Right) Word Out.

How do you describe a successful business? ›

10 Essential Things Successful Businesses Have in Common. Does Yours?
  • Willingness to take chances. Business owners who are willing to take chances tend to achieve more than those who play it safe. ...
  • Unique value. ...
  • Tenacity. ...
  • Customer-centric approach. ...
  • Good marketing. ...
  • Strong vision. ...
  • Passionate leaders. ...
  • Empowered employees.
Feb 2, 2021

What are the 3 ways to value a company? ›

When valuing a company as a going concern, there are three main valuation techniques used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions.

How do you calculate how much a company is worth? ›

Market Capitalization

Market capitalization is one of the simplest measures of a publicly traded company's value. It's calculated by multiplying the total number of shares by the current share price.

How many times profit is a business worth? ›

In most cases, people can determine their online business value by multiplying their average monthly net profit by 36x – 60x. For example, If a business generates a rolling twelve-month average net profit of $35,000, then this business would be valued at $1.26M on the low end and $2.27M on the high end.

How much can you typically sell a business for? ›

Price multiples provide buyers with a tool to estimate their return on investment. They are a quick way to arrive at a general estimate of the business's sale price. For example, nationally the average business sells for around 0.6 times its annual revenue and 2.4 times its annual SDE.

What do businesses value the most? ›

Examples of company values
  • Loyalty.
  • Honesty.
  • Trust.
  • Ingenuity.
  • Accountability.
  • Simplicity.
  • Respect.
  • Value-centricity.
Oct 31, 2022

What is a good amount of profit for a small business? ›

But in general, a healthy profit margin for a small business tends to range anywhere between 7% to 10%. Keep in mind, though, that certain businesses may see lower margins, such as retail or food-related companies.

How many times sales is a business worth? ›

Typically, valuing of business is determined by one-times sales, within a given range, and two times the sales revenue. What this means is that the valuing of the company can be between $1 million and $2 million, which depends on the selected multiple.

How much profit a business makes on each sale? ›

How Do You Calculate Profit Margins? You can easily determine a company's profit margin by subtracting the cost of goods sold (COGS) from its total revenue and dividing that figure by the total revenue. Multiply that figure by 100 to get a percentage.

Do you count your business in net worth? ›

You don't have to include your business in your net worth calculations — but its failure or success can affect your financial life, so it can be helpful to figure it out. Also, your business interests are assets that you could theoretically sell if you needed to offset debt.

How do you value a private small business? ›

Small businesses are commonly valued by their price-to-earnings ratio (P/E), or multiples of profit. The P/E ratio is best suited to companies with an established track record of annual earnings. In most cases, working out the proper price-to-earnings ratio to use is determined by profits.

What multiple do small businesses sell for? ›

Determine the right multiple.

The typical range for a small business is 1.5 to 3x SDE. Higher earnings, fast growth, and stellar margins can all help to increase the multiple.

What is the number one rule of selling? ›

1. Treat the customer as you would want to be treated. Consider how you would want to be treated by a sales professional, and then treat your customer in the same manner. Be polite, not pushy; be helpful; and most of all, make the customer feel comfortable.

Do you pay tax when you sell a business? ›

Capital Gains Tax when selling a business

To work out your tax liabilities, you need to understand Capital Gains Tax. Capital Gains Tax is the tax applied on the profits made from selling your business, not the total amount received from the sale.

What happens to cash when selling a business? ›

Another important consideration: “What happens to cash when selling a business?” Normally, cash is not included as an asset when selling a business. This means the business owner (Seller) keeps all cash when selling a business, including petty cash, money in bank accounts, and cash equivalents.

What are the 3 C's of selling? ›

The 3 C's of Driving Sales: Connect, Convince, Collaborate
  • Winners in the sales industry exhibit a set of key behaviors to boost their profits. ...
  • Psychology is a big part of the sales process, with prospects wanting their feelings validated before they make a purchase.
Feb 21, 2023

What are the 7 selling process? ›

There are seven common steps to the selling process: prospecting, preparation, approach, presentation, handling objections, closing and follow-up. The first three steps of the selling process involve research into prospects' wants and needs, with your presentation midway through the selling process.

What are the 4 selling strategies? ›

The four basic sales strategies salespeople use are script-based selling, needs-satisfaction selling, consultative selling, and strategic-partner selling. Different strategies can be used with in different types of relationships.

What are the 7 key questions? ›

Ask the right question: Who, What, Why, When, Where, How, How Much? - Consultant's Mind. These 7 key questions are a great checklist, but also a sanity check.

What are the six key questions? ›

It needs a really strong foundation. One of the best ways that teams can ensure they have a solid foundation is by answering the six basic questions of who, what, why, where, when, and how.

What are some good open ended questions for sales? ›

So let's dive into what this is all about and how you can use open-ended sales questions to improve your customer insights.
Here are some follow-up questions you can try.
  • How so?
  • Why is that?
  • Can you tell me more about that?
  • What caused that to happen?
  • How'd that make you feel?
  • Did it improve or get worse?

What are the three main questions that a good strategy should ask? ›

Strategic thinking, according to Drucker, is knowing the right questions to ask.
"Gentlemen, at the end of today's meeting you will want to be able to determine how you are going to answer the following three key questions:
  • What is our business?
  • What will our business be?
  • What should our business be?"
Oct 11, 2011

Which part of your business are not profitable? ›

Answer. Answer: Which parts of your business are not profitable? Resources are limited.

How do you value a business for beginners? ›

Market capitalization is the simplest method of business valuation. It is calculated by multiplying the company's share price by its total number of shares outstanding.

How do you sell stock tips? ›

Share Market Tips
  1. ✔ Set goals before investing.
  2. ✔ Understand share market basics.
  3. ✔ Research and conduct due diligence.
  4. ✔ Select fundamentally strong companies.
  5. ✔ Do not buy based on rumours.
  6. ✔ Define profit targets.
  7. ✔ Invest through reliable intermediaries.
  8. ✔ Avoid risky low-priced stocks.

Can you buy and sell tips? ›

Since TIPS are issued by the U.S. Treasury and backed by the full faith and credit of the U.S. government, they are considered low-risk investments. Additionally, there is a secondary market available for TIPS so investors can sell their securities, if needed.

How do small businesses get tips? ›

20 Tips for Small Business Owners
  1. Stay organized. ...
  2. Learn to be flexible. ...
  3. Automate as many things as possible. ...
  4. Maintain a personal touch. ...
  5. Protect your intellectual property. ...
  6. Have a great website. ...
  7. Create unique content. ...
  8. Don't be afraid of data analytics.

How do I calculate what my business is worth? ›

Determining Your Business's Market Value
  1. Tally the value of assets. Add up the value of everything the business owns, including all equipment and inventory. ...
  2. Base it on revenue. How much does the business generate in annual sales? ...
  3. Use earnings multiples. ...
  4. Do a discounted cash-flow analysis. ...
  5. Go beyond financial formulas.

How much should I sell my small business for? ›

A business will likely sell for two to four times seller's discretionary earnings (SDE)range –the majority selling within the 2 to 3 range. In essence, if the annual cash flow is $200,000, the selling price will likely be between $400,000 and $600,000.

How many times profit is a small business worth? ›

In most cases, people can determine their online business value by multiplying their average monthly net profit by 36x – 60x. For example, If a business generates a rolling twelve-month average net profit of $35,000, then this business would be valued at $1.26M on the low end and $2.27M on the high end.

How do you short sell tips? ›

Here are 5 tips on how to short a stock successfully:
  1. Understand what shorting a stock means. ...
  2. Read the fine print. ...
  3. Know the reasons why you want to short a company. ...
  4. Make sure short positions are included in your trading plan and you are controlling your risk. ...
  5. Use short selling to hedge your existing positions.

How do you sell stock First In First Out? ›

FIFO. The first in, first out (FIFO) method means that when shares are sold, you must sell the first ones that you acquired first when calculating gains and losses. For example, let's say an investor owned 50 shares and purchased 20 in January while purchasing 30 shares in April.

How do I sell stocks of my business? ›

To sell or transfer shares in a company, either an existing shareholder has to give up or sell their shares, or the company will need to create new shares. However, the creation of new shares will impact the shares already in existence as the total always has to be 100%.

How do I sell for the first time? ›

To help you reach your own sales career goals, here are some steps you can use to make your first sale:
  1. Set meaningful goals. ...
  2. Make a plan. ...
  3. Reflect and redirect. ...
  4. Leverage your network. ...
  5. Use social media. ...
  6. Incentivize referrals. ...
  7. Offer email discounts. ...
  8. Consider a product giveaway.
May 17, 2021

Can I resell anything I want? ›

Generally, it's not illegal to resell a product. Restrictions normally come from the platform themselves and not the manufacturer of the company. The truth is that most brands are safe to resell. You're just not allowed to claim “brand new” or “straight from the manufacturer” because that just wouldn't be true.

What are the 5 tips or guide to succeed in a business? ›

5 Tips for Starting a Successful Business
  1. Begin with a detailed plan.
  2. Get out there and network.
  3. Surround yourself with the right people.
  4. Stay ahead of the curve.
  5. Find a healthy work-life balance.
Jul 6, 2016

What 3 things make a business successful? ›

No matter how bold or ambitious your plans are to grow your business, the key to your business's success lies in three critical, interdependent components: operational excellence, customer relations/communications and financial management.


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