Thinking of selling but stuck in the details and logistics? Find the help you need to power through and make the sale.
This post was first published on my Medium blog—follow me there for the most up-to-date entries!
What is stopping you from selling your business? In this series of three posts, I’ll talk about overcoming the barriers to selling your business: the mental barriers, the practical barriers, and the external factors. This week, we’ll discuss practical concerns and logistical barriers.
Last week was all about you — about overcoming your own internal barriers to selling. Now let’s talk about some practical factors that can feel like roadblocks when you’re considering selling but don’t have the time, resources, or clarity to address them.
Lack of preparation or readiness
Maybe you’ve already heard yourself saying, “Oh, I need to fix a few things before I can sell.” Ah, me, too. So, one day, I set out to polish up a few issues. I dove in — checking my project management software to make sure all the goals, tasks, and deadlines were set for the next marketing campaign. Then I found myself reviewing employee job descriptions. Then it was the financial reports. And before I know it, the list of “issues” seemed endless, and everything looked far from perfect.
While it’s true that a well-prepared business can sell for a higher price, perfection isn’t necessary. Many buyers are willing to purchase businesses with room for improvement, and even small changes can make a big impact. Don’t let a less-than-perfect business be a barrier to selling your business.
Action step: Start small and prioritize. Begin with cleaning up your financials, documenting key business processes, and maybe promoting or hiring someone to strengthen the leadership team. I hired a fantastic project manager, and although we still had some imperfections, we were in a much better position after a month or two. I also spent hours with my bookkeeper, realizing that what made sense to us might not be clear to an outsider. In my mind, everything boils down to the Donabedian model: structure, process, outcome. To focus your efforts, pick one weak structure, one weak process, and one weak outcome to improve. This can make a significant difference without overwhelming you.
Uncertainty about timing
If you’re like me, you might find yourself thinking, “I’m not sure now is the right time to sell.” It’s easy to create all sorts of narratives in your head. Maybe it’s your busy season, and you don’t have time for the selling process. Or it’s your slow season, and you don’t want buyers to see your sales dip. The economy is in a slump, butter costs $7 a pound, or maybe the whole world is on lockdown. And let’s not forget election year uncertainty.
Timing can feel tricky, especially with fluctuating market cycles, personal life changes, or unpredictable business performance. While timing matters, it’s hard to know when exactly to sell. But if your business is doing well and you’re ready for a change, that might be the right moment.
Action step: Assess market conditions and consult a professional to get a clearer picture of buyer demand for your business type. It’s a bit like parenting — you’ve waited so long, but now that you’re pregnant, you’re unsure if it’s the right time. Don’t wait for “perfect” timing. If the market is strong and you’re ready, that’s probably enough.
Legal and tax concerns
This is one of the most daunting barriers to selling your business. It’s okay to admit you don’t fully understand the tax implications or legal complexities of selling your business. How could you? You’ve never done this before. The legal and financial complexities of selling a business can be overwhelming, especially when it comes to structuring the deal and managing tax implications.
But you don’t have to navigate this alone. My father, a highly successful entrepreneur, always told me, “For $1,000 a day, you can hire all the brains you need.” That number may be outdated now, but his point is still true. There are professionals who specialize in selling a business and they can handle these complexities for you.
Action step: Hire a tax professional and an attorney to help you understand potential tax consequences and structure the deal to minimize liabilities. You may need a specialist — for example, a mergers and acquisitions attorney. If you’re not sure how to find the specialists, start by asking the professionals you already know to make a recommendation. (I briefly explained my situation here.)
Overwhelming process
I could hear myself saying, “Selling a business sounds like too much work, and I’m already exhausted.” Does that sound familiar to you? Then you’ve located one of your barriers to selling your business.
It can feel overwhelming because there’s so much to juggle — identifying qualified buyers, handling buyer interactions, gathering critical information, making key decisions, and preparing your business data. Each step requires careful consideration, and the process can seem mysterious, especially if it’s your first time. Sellers often find themselves drowning in information, unsure of what’s most important or how to prioritize the next step.
One way to approach this is to reframe the process. Selling your business isn’t just a “sale” — it’s a series of steps that require careful planning and strategy. Focus on the “who” and the “what” that will help support your goal and align with your reason for selling.
Action step: Use a question-based approach to clarify your next steps. Here are a few to start with:
- Who can help? Consider your bookkeeper, accountant, attorney, broker, or business coach or mentor.
- What’s your criteria for a “qualified buyer?”
- What does a “successful sale” look like to you?
- What data do you need to gather, and where will you find it?
- What are the tough questions that might arise during due diligence and negotiation? (Make a list of 10 or so.)
- What milestones will help you track progress? Turn this into a formal project to keep things organized. Common milestones are (1) preparation phase, (2) marketing the sale, (3) negotiation and offer phase, (4) finalizing the deal, (5) transition phase, and (6) post-sale phase. I will describe those in a later post.
While selling your business can feel daunting, it’s ultimately a process of organization, qualification, and decision-making. By clearly defining your buyer criteria, preparing your business, and breaking the selling process into strategic steps, you’ll gain control. Focus on manageable tasks, and rely on trusted advisors to guide you through each phase.
Don’t let them stand in your way
If you start worrying over every little detail, you’ll start to convince yourself that every single one is an insurmountable barrier to selling your business. The first step to overcoming the practical barriers is to realize that perfection isn’t possible: imperfect businesses sell, and businesses sell at great prices in imperfect conditions. All of the concerns in this post might be something you want to work on, but none of them disqualify you from your ambition to sell.
Through a mix of making improvements yourself and hiring people who know what they’re doing, you can get your business ready to sell quickly and efficiently. Just make sure to keep your eye on the big picture — as long as you’re obsessed with the details, all you’ll see are barriers.
This post was first published on my Medium blog—follow me there for the most up-to-date entries!