5 Red Flags That Make a Business Hard to Sell

Some businesses attract multiple buyers and sell at a premium price, while others struggle to get serious interest. The difference? Red flags that scare buyers away.

The 5 Biggest Red Flags for me are:

🚩 Owner Dependency – If the business relies too much on you, it’s a risk. Buyers want a business that can run without the owner.

🚩 Messy Financials – If your books are unclear, buyers won’t trust the numbers.

🚩 Customer Concentration – If one client makes up 20%+ of revenue, that’s a major risk.

🚩 No Documented Systems – Buyers need clear processes to take over smoothly.

🚩 Stalled or Declining Growth – Buyers look for businesses with future potential, not just past success.

How to Fix These Issues Before Selling

• Start delegating responsibilities to a second-in-command or GM (and if you don’t have one, get one).

• Work with a financial expert to clean up your books. Start with your accountant, but make sure that they have experience and understand what buyers re looking for (most don’t)

• Diversify your customer base so no single client is too large.

• Document your standard operating procedures (SOPs).

• Develop a growth strategy that buyers can execute. You don’t have to implement one (that’s for the new buyers), but you have to have it.

Key Takeaway:

Buyers want stability and predictability. Eliminate these red flags, and you’ll dramatically improve your chances of a high-value sale.

Ensure your business is primed for a successful sale. Download your free 'Is My Business Ready to Sell?' checklist now!

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