Exit Smart - 20 Golden Nuggets for SME Owners - Part 2. Is Your Business Ready for Sale?

You may feel ready to exit, but is your business? Many SME owners mistakenly believe that a profitable business is automatically sellable. The truth is, buyers look for more than just profits—they want a business that runs smoothly without the owner’s constant involvement.

To assess your readiness, consider your operational structure. Can your business function efficiently without you? Do you have documented processes in place for key areas like sales, operations, and finance? If you leave and things fall apart, the business won’t be as attractive to potential buyers.

Next, evaluate your financials. Are they clean, transparent, and up-to-date? Buyers will perform due diligence, and any irregularities in your books can be a major red flag. Clean financial records, combined with consistent performance, signal stability and reduce perceived risk.

Lastly, think about the strength of your customer and supplier relationships. Are these relationships tied to you personally, or are they with the business itself? Transferring trust to the buyer is critical in ensuring a smooth handover.

Golden Nugget - A sellable business is one that operates smoothly without the owner. Invest in systems, processes, and people to ensure your business can thrive independently.