For many business owners, the idea of selling their business can feel something to worry about years down the line. The business is performing well, generating a steady stream of profits and dividends and the owner is enjoying, rather than enduring the challenges that come with ownership.

It’s easy in this situation to keep focusing on the here and now but it’s always worthwhile spending the time early to start assessing your options, planning, and preparing for the eventual sale of your business, often well in advance of a transaction occurring.

The Misconception of “Too Soon”

One of the most common misconceptions is that thinking about selling means you’re already ready to exit. In reality, planning to sell is less about immediate action and more about building a roadmap. By starting early, you’re giving yourself time to maximize the value of your business, avoid last-minute scrambling, and ensure a smoother transition when the time comes.

Selling a business isn’t an overnight process. It involves evaluating market conditions, finding the right buyer, preparing the business and financial statements, going through due diligence and agreeing legal documentation. A lengthy process which can take months to do properly. The earlier you start preparing, the smoother this process will be and the more control you’ll have over the outcome.

Building Value Before the Sale

One of the main reasons to start thinking about selling early is to enhance your business’s value. Buyers look for strong and steady financial performance, a leading and defensible market position, scalable processes and a strong management team with minimal dependence on the exiting owner. These elements can take time to properly develop and bed in ahead of a sale.

For example, imagine your business relies heavily on your personal involvement. A buyer might view this as a risk, setting you up for a lengthy handover period and some element of value retained until a successful transition. By identifying this as a risk early, you can work on delegating responsibilities, training a capable team, and creating systems that allow the business to thrive without you. These adjustments not only make your business more attractive but also position it for long-term success – whether you sell it or not.

Keeping Your Options Open

Planning early also gives you the flexibility to choose the best time to sell. Market conditions, industry trends, and economic factors all play a role in determining your business’s value. If you’re prepared, you can act when the timing is right rather than feeling pressured to sell during a downturn or personal crisis.

A Win-Win Mindset

Ultimately, thinking about selling your business early is about creating options. Even if you’re years away from selling, the actions you take today can pay off in the future. You’ll not only boost your business’s value but also gain peace of mind knowing you’re prepared for whatever comes next.

So, when should a business owner start thinking about selling? The answer is simple: right now. It’s never too early to begin planning, preparing, and positioning yourself for success – whether you’re ready to sell tomorrow or ten years from now.

Why Partner with Springboard?

Springboard has a proven track record in working with owner-managed businesses  throughout the transaction cycle, providing the expertise, objectivity, and hands-on support needed to prepare a business for sale and navigate every step of a sale process seamlessly.

Ready to discuss your M&A ambitions? Let’s talk.