How to Sell Your Business: A Practice Guide to Avoiding Costly Mistakes
- Brad Turville
- Mar 24
- 4 min read
Updated: Mar 29
Straightforward advice for owners who want maximum value, with minimal chaos.
Selling your business isn't just a milestone, it's a minefield. Get it wrong, and you'll lose time, money and leverage. Most owners only sell once. Many learn the hard way.
This guide cuts through the noise. No fluff. Just the practical advice you need to avoid the traps and walk away with maximum value.
Why Selling A Business Isn't Straightforward
Selling sounds simple: find a buyer, agree on a price, hand over the keys. In reality? It's a high-stakes, high-complexity process. Poor prep, bad timing or missing paperwork can blow up the deal - or cost you hundreds of thousands, or more, in lost value.
Knowing where owners go wrong is the first step to getting it right,
Common Mistakes That Undermine Business Sales
Waiting Too Long to Get Ready
The biggest mistake? Leaving it too late. Buyers don't just look at today's profits, they want to see a clean track record, strong systems, and a clear runway. That takes time to build.
What to do instead:
Start planning at least 12-24 months out.
Clean up financials, lift margins, and fix any operational mess while you still can.
Time the sale around strong performance - not when you're burnt out and ready to walk.
Messy Financials That Scare Buyers
If your financials are a mess, buyers will assume your business is too.
And they'll either lowball you, or walk.
What to do instead:
Keep your numbers clean, current and verified by your accountant.
If you can, get a formal review or audit - it builds confidence and drives up value.
Overvaluing the Business
Every business owner thinks their business is worth more than it is. Buyers don't care how hard you've worked - they care about commercial return.
What to do instead:
Get a third-party valuation, not a guess based on gut feel..
Benchmark against similar businesses in your industry and size range.
Be realistic - it helps deals move faster and keeps negotiations grounded.
Get a third-party valuation, not a guess based on gut feel. If you’re not sure how valuations actually work or what drives them, read our full guide to business valuations.
Overlooking Legal Issues
Unresolved legal risks scare buyers. They want certainty. Anything that smells like risk - dodgy contracts, compliance gaps, unclear ownership - can kill the deal.
What to do instead:
Do a legal audit with your lawyer before going to market.
Fix contracts, clean up employment agreements and make sure you're compliant.
Poor Tax Planning When Selling a Business
You can make a great sale... and still walk away with less than you should, thanks to tax. Most owners don't structure the deal properly. And they pay for it.
What to do instead:
Get tax advice before you start negotiating.
Consider earn-outs, asset vs share sales, or staged payments if it improves your position.
Dealing with Unqualified Buyers
Wasting time with tyre-kickers burns energy and can stall momentum. You don't want to find out someone can't fund the deal after you've already shared everything.
What to do instead:
Qualify buyers upfront. Are they serious? Do they have the money? Do they understand your industry?
A good broker or corporate advisor can help filter out the dreamers and time-waters.
Trying to Sell Without Expert Help
Selling a business takes more than a few emails and a handshake. It's a detailed, emotionally charged process with lots of moving parts. Go it alone, and you'll likely leave money on the table, or worse, blow up a good deal.
What to do instead:
Build a team. At minimum: a broker (or corporate advisor for bigger deals), an accountant and a lawyer.
They'll help you negotiate, navigate due diligence and keep the deal on track.
Want a Stronger Business Sale? Do This First
Align With Buyer Intent
What do buyers actually want - access to your market? Strong recurring revenue? Operational efficiency? Make it obvious how your business delivers.
Show Growth Potential
Don't just sell the now, sell the "what's next". Paint a clear picture of how the next owner can scale what you've built.
Get Lean Before You List
Tidy up processes. Remove yourself from daily ops. A business that runs without you is worth more than one that relies on you.
Getting lean is one part of the equation, but the other is knowing what value levers matter most. See how valuations are calculated and what buyers really value.
Have a Transition Plan Ready
Buyers want to know the handover will be smooth. Build a clear transition plan with staff training, customer continuity and key knowledge transfer.
FAQs About Selling Your Business
How long does it take to sell a business?
Anywhere from 6 months to 2 years. It depends on the business, the market, and how prepared you are.
When's the best time to sell?
When you're profitable, growing and have clean financials. The worst time? When you're desperate or declining.
Do I need a broker to sell my business?
If you want to maximise value and avoid wasting time - yes. Good brokers earn their fee by driving competition and handling negotiation.
Final Word
Selling your business isn't easy, but done right, it's your biggest payday. Avoiding the common traps is half the battle. The rest? Having the right people in your corner.
Thinking of selling the next 12-24months?
Let's get clear on the strategy and numbers now - so you're ready when the right buyer shows up. Start by understanding your current valuation and how to improve it.