Top 5 Questions You Should Ask Yourself Before Selling Your Business

If you own a business then you know that proper planning and setting goals is key to keeping your operations running smoothly. But did you also know it’s the best way to form your exit strategy? Many business owners are experts in running their business day to day, but end up unprepared when it comes time to sell their business.

With that in mind, here are 5 questions you should ask yourself before selling your business.

Contingency Plan: How Will Your Business Fare After You're Gone?

One of the most important questions that a buyer is going to ask is, “is there a plan in place for your exit?”  Making sure you have a supportive management team and a stable transfer of power from the business owner is one of the biggest obstacles to the success, or failure, of a business ownership change. 

Statistics show that only 20 to 30% of businesses that go to market actually sell; leaving up to 80% of those without solid options to harvest their wealth and ensure economic continuity into the next generation."

– Christopher Snider, CEO of Exit Plan Institute

Can Your Marketing Stand Alone?

In relation to the first question, having an independent marketing process that doesn’t rely on your contacts or performance as the owner of the business is very important to the sustainability of a company’s performance. Marketing is essential to growing your business value, building brand awareness, and optimizing sales. If these operations are tied to you as the owner, the buyer is going to view this as a huge risk and might not be keen on purchasing. Consider hiring an outside marketing firm that is reliable for the long term or creating an in-house marketing department before deciding to sell. 

Do You Have a Diversified Portfolio?

When buying something, the risk must be equal (or preferably less) than the reward. The buyer is going to look at all of the risks associated with your business; one of the main ones is your revenue. Reducing the risk to your revenue can be done in many different ways, but two of the most basic options are diversification and consistency

 

It is in your best interest to diversify your vendors, your services or products, and your delivery channels. What that means is if a food vendor has a spoiled batch, you should have another vendor you can call up, or if one of your delivery channels has a delay in their supply chain, you have other options to get your product or service to your customers. 


Additionally, having a consistent flow of revenue is valuable in the event of an off-season or in emergencies – say, a pandemic for instance. This consistent income can come from subscriptions, contracts, a monthly/recurring service, or a product that is consumable. Keep these things in mind when creating your product offers and your forward/backward integration.

...many OEMs (Original Equipment Manufacturers) should consider using three different suppliers for a part and then apportion the spend among the three. The thinking is if a disaster strikes and takes down production of one of the suppliers, the two other suppliers should be able to pick up the slack.”

– James Carbone, Electronics SupplyChain Expert

Is Your Company Unique and Protected (With Patents)?

The main concern for every business owner is to beat competitors. This is also true when it comes to selling your business. Buyers are also looking at your industry’s competitive landscape when it comes to purchasing your business, not only as they are going to have to join in the fight to keep the business relevant but also to determine which business to buy. 

 

They will be much more likely to buy your company if you already have a niche consumer base and a unique product or service that is difficult for competitors to emulate. This could also mean being in a good location with little to no competition or little competition for the ownership of intellectual property or licenses/patents because IP protection issues can derail things in the due diligence review process. For sellers, it is wise to address IP issues well before the business is offered for sale. 

It's common for most small business owners to keep around 70-90% of their net worth in their business, making it even more critical that they get that value out of their business when it’s time to sell.

How Organized is Your Business?

Lastly, the organization of your business is another important factor in determining its value. The less work the buyer has to do after the purchase, the better. Having a list of operational procedures in place laid out in a way that is easily teachable for new staff alongside a skilled labor force is a great way to have continuity. The same goes for business operations – if your accounting and inventory are kept in good order and are easy to understand, the buyer will feel much more confident about the value of your business. 

50% of agreed deals never close due to the deal not being able to get through the initial due diligence stage. Relying on a business broker can help increase the statistics on a successful and profitable sale.

Are You Ready To Sell Your Business?

Hopefully, this list gave you some insight into areas of strength in your business that are already adding value, or perhaps you can take note of some areas that may need some help before it’s time to sell your business. We highly recommend creating an exit strategy plan now to fully prepare for the successful future of your business. 

 

Here at Advanced Business Brokers, we specialize in brokering privately owned businesses, and we advise on exit plan strategies for all varieties and sizes of businesses. Contact us today to work on building the value of your business and getting you prepared for a sale in the future.

Work With An Experienced Business Broker

If you’re thinking about selling your business and don’t know where to start, consider speaking with our team here at Advanced Business Brokers. We specialize in brokering and advising exit plan strategies for various sizes/sectors of businesses.

Read More from ABB

Bob Paden

With over 25 years of dedicated experience, Bob empowers small business owners in the Indianapolis metro area to achieve their entrepreneurial visions, whether by building scalable operations or crafting highly sellable entities. For three decades, he’s cultivated a robust network of owners, buyers, and strategic partners, a resource he fully leverages to help clients meet their unique objectives.

Bob’s expertise spans a diverse range of industries, including trade-based businesses like construction, HVAC, skilled trades, and manufacturing, as well as white-collar professional service firms such as law, finance, marketing, and technical services. Beyond his client work, Bob actively contributes to his community, serving as Treasurer for the Boone County Chamber Board and as well as a board member for both the Central Indiana Police Foundation (CIPF) and Fiscal Sponsorship Allies (FSA).  

Bob holds a degree in Mechanical Engineering Technology from Purdue University in West Lafayette, Indiana, and teaches there as well in the Certificate in Entrepreneurship and Innovation Program, which is ranked among the Top 50 programs in the U.S.

He lives with his wife Lori in Zionsville, just outside Indianapolis, and in his free time, he enjoys working on his home, playing golf, and traveling.

Marissa Ihssen

With a degree in psychology and a professional background in social work, Marissa
brings a people-centered lens to every project. Her experience includes being a Project
Planning Specialist at GE Aerospace, creating efficient processes and structures that
help teams work smarter and stay aligned. Marissa joins the Main Street Market Maker
team with Advanced Business Brokers to dedicate time and attention to smaller
business opportunities and provide excellent and supportive customer service.
Outside of work, she is a mom of three young men who finds joy in the everyday chaos
of family life. She loves strong coffee, warm beaches, and any excuse to spend time in
the sunshine. Hot yoga and hammocking are some of her favorite ways to reset and
stay grounded and help her show up with more presence both at home and in my
professional life.

Steve DeMaio, JD, CEPA

Steve brings more than 20 years of experience as a legal and financial professional to
his work with business owners preparing for transition and sale. He advises owners and
their families through every stage of the exit planning and transaction process, with a
focus on thoughtful assessment, risk management, and strategic value enhancement.
Steve is a Certified Exit Planning Advisor (CEPA®) and an active member of the Exit
Planning Institute. He previously served as Director of the Small Business Development
Center in Toledo, Ohio, where he worked closely with entrepreneurs across a wide
range of industries on growth, financing, and succession planning initiatives.
Earlier in his career, Steve practiced law with a nationally recognized Chicago-based
law firm and held roles in capital markets and commercial banking with leading financial
institutions. This multidisciplinary background allows him to approach business
transactions with a practical understanding of legal, financial, and operational
considerations.
As a business broker, Steve specializes in industrial and manufacturing companies,
skilled trades, and professional service firms, including marketing, staffing, and financial
services businesses. Steve earned his Juris Doctor from Loyola University Chicago
School of Law and a bachelor’s degree in economics from the University of Notre
Dame. He lives in the Toledo area with his wife and two daughters. Outside of work, he
enjoys traveling, cooking, and spending time at his family’s lake house.

Dr. Mark Hagar

A lifelong resident of Fort Wayne, Indiana, Dr. Mark Hagar brings decades of hands-on experience in small business ownership, acquisitions, and turnarounds to his role as a business broker. Over his distinguished career, he has acquired and operated more than 20 companies and engineered over 50 successful turnarounds, giving him a uniquely practical understanding of what makes businesses succeed, and sell. His portfolio spans manufacturing, distribution, and service firms in industries including printing, education, military contracting, aerospace, and orthopedics. This diverse background enables him to identify value, anticipate buyer needs, and structure complex deals with confidence and precision.


Mark holds a Doctorate in Business Administration (DBA) from Cranfield University’s School of Management in Bedford, England—one of Europe’s leading business schools. His research on small business resilience and operational excellence has been recognized by the Small Business Institute (SBI), the United States Association for Small Business and Entrepreneurship (USASBE), and the International Council for Small Business (ICSB).


In addition to his business career, Dr. Hagar has served as a member of faculty at several institutions of higher education, including Holy Cross College (Notre Dame), Trine University, and the University of Saint Francis. He also hosted Your Business Matters, a small business–focused radio show and podcast for more than a decade and is the author of Small Fortunes – the Acquisition Entrepreneur’s Guide to Buying a Profitable Small Business.


A passionate advocate for entrepreneurs, Mark previously chaired the Indiana Leadership Council for the National Federation of Independent Business (NFIB), representing small business owners before state and federal legislators. He currently serves as President of the Allen County, Indiana Economic Development
Commission.


As a broker, Mark specializes in industrial, manufacturing, and distribution firms, with particular expertise in special situations, distressed assets, and complex transitions where experience, creativity and discretion are central to success.