Meet Sarah: The Small Business Owner Who Couldn’t Sell
Sarah had spent over a decade building her bakery, “The Flour Powerhouse,” into a neighborhood staple. But after a few years, she was ready to move on. She listed her business, expecting a quick sale and a fat paycheck. After all, who wouldn’t want to own a thriving bakery with a loyal customer base? However, like many small business owners, Sarah hit a wall. Weeks turned into months, and months into a year. Buyers weren’t biting.
The truth is, Sarah’s story is all too common. Did you know only 20% of small businesses listed for sale actually sell? That’s a whopping 80% that remain stuck in limbo. Why? Most owners, like Sarah, fail to prepare properly.
If you’re thinking of selling your small business, you need to know the ins and outs of the process. Let’s walk through what you need to do to avoid becoming another “Sarah.”
1. Know Your Business Value
Your business’s value is based on profit, assets, industry trends, and the current market. It’s important to get a professional valuation, so you don’t scare off buyers with an unrealistic asking price.
First things first, you need to know what your business is worth. You might love your business like a first-born child, but buyers will only care about the cold, hard numbers. Sarah overvalued her bakery, thinking that her love for cinnamon rolls could somehow increase its market value. Spoiler: it didn’t.
2. Get Your Financials in Order
One of the biggest reasons businesses don’t sell is messy financials. Buyers want to see clean, detailed financial records that show your business is profitable. They’re not interested in sifting through a shoebox of receipts and handwritten notes. Sarah, unfortunately, learned this the hard way when her first buyer walked away after reviewing her chaotic financials.
Make sure you have the following ready:
- Profit and loss statements
- Balance sheets
- Tax returns for the last few years
- Records of debts and assets
3. Timing is Everything
Sarah listed her bakery during a local economic downturn, which was mistake number three. When it comes to selling your business, timing is critical. Ideally, you should sell when your business is doing well, not when you’re struggling to keep the lights on. Buyers are more interested in businesses that are thriving, and they’ll pay more for them too.
Pro Tip: Keep an eye on industry trends. If your industry is booming, now might be the time to list your business, even if you’re not quite ready to let go.
4. Market Like You Mean It
It’s not enough to just list your business on a marketplace and cross your fingers. You need to actively market it. Sarah relied on word of mouth, but that wasn’t enough to attract serious buyers. You need a killer marketing plan that showcases your business’s potential.
This means:
- Professional listings on business sale platforms
- Highlighting unique selling points (e.g., loyal customer base, prime location)
- Reaching out to potential buyers in your industry
You can also hire a business broker to help market your business to the right people. They can streamline the process and get your listing in front of serious buyers, not just tire-kickers.
5. Be Patient, But Don’t Wait Forever
Selling a business takes time. Sarah wanted a quick sale, but in most cases, you’ll need patience. However, waiting too long can hurt your chances. Just like Sarah waited for the perfect offer that never came, you could miss out on great buyers if you hold out for too long. Be realistic about what you can get and when you can get it.
Final Thoughts: What Sarah Could Have Done Differently
Sarah’s story didn’t have to end in frustration. If she had taken the time to properly value her business, clean up her financials, and market it effectively, she could have sold her bakery within months, not years. If you’re thinking of selling, don’t wait until you’re burned out or desperate. Start preparing early to get the best deal possible.
Thinking about selling your business? Don’t go it alone. Contact FusionWorks Enterprises today for expert guidance and a smooth sale process. We specialize in helping small business owners like you sell for top dollar, with none of the stress.
