Why 80% Of Owners Can't Sell A Business When They Want To
Most small business owners expect to sell a business one day, cash out, and move on to their next chapter, whether that’s retirement, a new venture, or financial freedom. The reality is different. Between 70% and 80% of small businesses never sell, according to the State Of Owner Readiness™ Research by Exit Planning Institute.
The problem isn’t that these businesses lack value or that the owners haven’t worked hard enough. According to our 2024 Exit Readiness Report the issue is that business owners aren’t prepared for a sale.
Now, before we dive in…
🚨 You built your business from scratch.
You only sell it once.
Do it right.
The 7-Figure Exit™ gives business owners like you:
✅ A clear view of your business’s value
✅ A custom exit-readiness plan with actionable steps
✅ The confidence to smartly negotiate your exit and avoid costly mistakes
Enrollment closes Thu, May 15 at 2pm CT.
🎁Get in the Platinum tier to unlock 6 months Diamond Community Access FREE (worth $5K).
92% of small businesses aren’t exit-ready. Yours will be.
Be prepared. Be in control. Exit on your terms.
Selling a business is not like selling a car or a house. Buyers aren’t just looking at revenue; they want a well-structured, scalable, and de-risked asset that can thrive without its current owner.
So why do so many businesses fail to sell? And more importantly, how do you make sure yours is among the few that do?
Reason 1: The Business Relies Too Much on the Owner
Many small business owners have built a company where they hold all the client relationships, make every major decision, and are the face of the business. This might work while they are running it, but from a buyer’s perspective, it’s a liability. If the business cannot function without the owner, it isn’t a business—it’s a job.
Buyers want an operation that can run smoothly without the original owner. If stepping away for a few weeks leads to chaos, it’s a sign that your business is too dependent on you. To increase its sellability, business owners need to start stepping back long before they plan to sell. This means systemizing and documenting key processes, training a leadership team, and testing whether the company can operate without constant oversight.
Reason 2: Revenue Is Too Unpredictable
A business that relies on one-time sales has to start from scratch every month. That might work for the owner, but buyers look for stable, recurring revenue. The more predictable the income, the lower the perceived risk.
Businesses that command the highest valuations tend to have recurring revenue models, such as subscriptions, memberships, or long-term contracts. Creating stable revenue streams makes a company more attractive to buyers and increases its financial stability. Even service-based businesses can build recurring income by offering retainers or packaged solutions instead of one-off projects.
Reason 3: Messy Financials and No Clear Valuation
Many small business owners mix personal and business expenses, neglect bookkeeping, or fail to track key financial metrics. This makes it difficult for buyers to assess the true profitability of the business. When financial records are unclear, buyers will either walk away or make a significantly lower offer.
A business with clean, organized financials signals stability and transparency. Having at least three years of detailed financial statements, separating personal and business expenses, and understanding the company’s valuation are essential steps in preparing for a sale. Buyers want proof that the business is profitable, and they need to see clear financial records to justify the purchase price.
Use this independent business valuation tool to understand how much your business is worth today.
Preparing To Sell A Business Successfully
The best time to prepare for a sale was three to five years ago. The second-best time is today. Selling a business is not only about finding a buyer. It is about building a business buyers actively want.
The first step is assessing whether the business is exit-ready with an assessment tool like this one. It helps with identifying areas that need improvement and making strategic adjustments can significantly increase the likelihood of a successful sale.
Taking the time to prepare now ensures that when the opportunity to sell a business arises, the business is in a position to attract serious buyers and command the highest possible price.