To sell your small business, there are some very crucial steps to take before the listing. For one, it is very important to understand your business’s value in the marketplace.  Obtaining a valuation allows you to thoroughly understand a business’s financials and their value in the marketplace, and give you an understanding of the price at which you should list your business for sale. Before that decision is made, a BOV can give you an inside look at what is working and what might not be.

A great deal I got a call from someone who was in the process of purchasing a business from an Uncle. The Uncle wants a million dollars for the business which includes real estate, and is willing to sell to his niece on a contract for deed. The niece would pay for the business over time with the proceeds of the business. The niece, who currently works in the business, would eventually be the owner, without having to get approved for a bank loan or provide cash for a deposit. Seems like a win-win, right?

A large percentage of businesses listed for sale never do.  Following are the “Dirty Dozen” reasons why businesses fail to sell.