At this point, the question is when you should sell. So let’s talk about that. In short, the best time to sell your business is when you don’t have to. Many business owners are reluctant to sell in good times because the cash flow is good, and they don’t want to sell in bad times because the payout would be less. But the truth is, every business owner will exit their business at one point or another. It’s up to you whether it will be on your terms or someone else’s.

When you get to that point, know what you are selling. The number-one reason most sales do not get completed is that the seller is unrealistic about the value of their business. Business owners generally confuse the value of the business with their desire to walk away from the sale with a specific amount of money in their pocket. So they ultimately end up asking a price for the business that is based more on their feelings than an objective estimate of what the business is worth to a prospective buyer. Or worse yet, they think in terms of how much is owed against the business, which has nothing to do with its actual value. Do yourself a favor and get a comprehensive business valuation so you know exactly what you’re working with.

One last thing I feel obliged to mention – keep in mind the old adage: “He who represents himself has a fool for a client.” All too often, a business owner will brag about the money they saved in fees by selling the business themselves, but what they don’t realize is the amount of money they left on the table by not consulting with a professional. I’ll give a brief personal example. I’ve helped people sell over 800 businesses over the course of my career, so needless to say I know my way around negotiations. But when it comes to selling something of my own, I am almost inept. I once sold my own house, and I was a total wacko. I didn’t follow the process of selling, I was combative with everyone involved, and I let my emotions get the better of me. I learned the lesson the hard way. Always hire an intermediary to do the negotiations for you. (Which is why presidents, movie stars and sports celebrities all have managers to do the negotiating for them.)