Thirteen Questions to Ask Yourself before Trying to Sell Your Business on Your Own

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Before deciding to sell your business on your own, it is worth asking yourself the following questions:

(1) Do I have a way of confidentially marketing my business without my current employees, customers, or suppliers knowing that I am considering the sale of my business?

(2) While trying to run my business, do I have the time to weed out the 97% of buyer prospects that don't buy a business?

(3) If I take time away from running my business to handle the business sale process, will my business potentially decline in sales or profitability which would make my business even more difficult to sale?

(4) Do I know how much my business is truly worth in today's economy?

(5) How do I know that I am not asking too much when selling my business and scare away buyer prospects prolonging the timeframe to sell but don't price the business too low and leave money on the table?

(6) Do I have a way to market my business to the largest audience of potential buyers?

(7) Do I have a mechanism to make sure that my confidential information doesn't get into the wrong hands?

(8) If I know of a company or individual that would potentially acquire my company such as a competitor, supplier or customer, do I have a way of contacting them to see if they would consider an acquisition without first letting them know that it is my company that is available for sale?

(9) Do I know how to properly "package" my business to excite and answer key questions of a potential buyer and do I have time to assemble such a prospectus?

(10) Do I have experience in successfully negotiating a small business transaction?

(11) Do I know how to creatively structure deals that work for both the buyer and seller, especially in a tough lending environment?

(12) Do I have a network of business advisors that are specifically skilled in assisting in the completion of small company transactions such as transactional attorneys and business acquisition lenders?

(13) Do I have a way to provide a buffer between me and the buyer prospect to address my concerns during negotiations and due diligence without jeopardizing the chemistry that I have developed with the buyer prospect?

These questions are designed to help you realize that a business sale is a complex endeavor. Some look at professional representation as a cost.  It should be viewed as an investment or insurance.

Written by: Kipp A. Krukowski, MBA, CBI, CEPA and Owner of Confidential Business Sale, Inc. (www.ConfidentialBusinessSale.com)