E273: Are You Making This Mistake? – Why 80% of Small Businesses NEVER Sell

Most businesses never sell – The industry loves success stories, but the real numbers show that most owners fail to transition their businesses.

Sellability starts long before you decide to sell – Owners should focus on making their businesses ownable first. If you can step away without the business collapsing, it’s far more attractive to buyers.

Three critical questions determine sellability – Does your business generate desirable results? Can a buyer duplicate those results? Can you document those results?

Tax strategies can sabotage sellability – Owners who “minimize” profits for tax purposes are also minimizing the value buyers see in their business.

Buyers want proof, not promises – Handshake deals and back-of-the-napkin accounting don’t inspire confidence. If it’s not on your tax return, it doesn’t exist to a buyer.

Cash-heavy businesses raise red flags – Many owners say, “a lot of cash walks in the door.” Buyers hear: “I don’t report my real income.” If you want top dollar, run a clean operation.

You can’t replace decades of knowledge overnight – Many buyers overestimate their ability to replace an owner who has spent years mastering their business. Experience matters.

Start preparing now, not when you’re burned out – Most owners wait too long to think about an exit, and by the time they’re desperate to sell, they’ve already devalued their business.