Selling a small business is a significant step, and many business owners often consider using a broker to help with the sale. However, it’s entirely possible to sell a small business without a broker, and in 2025, many entrepreneurs are opting for this route. Selling your business independently allows you to save on broker fees and retain full control of the process, from marketing to negotiations.
In this guide, we’ll walk you through the steps on how to sell a small business without a broker, highlighting the key factors to consider and how to manage the sale process on your own.
Why Sell Your Business Without a Broker?
Before diving into the steps, it’s essential to understand why you might choose to sell a small business without a broker:
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Cost Savings: Brokers typically charge a commission of 5% to 10% of the sale price. By selling independently, you can save this money and retain more of the sale proceeds.
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Full Control: When you sell on your own, you have complete control over the sale process. This includes deciding on the asking price, handling negotiations, and choosing who buys your business.
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Confidentiality: If confidentiality is a concern, selling without a broker ensures that sensitive business details are only shared with serious buyers.
However, selling a business independently does come with challenges. You’ll need to be proactive and organized to handle the process effectively.
Steps to Sell a Small Business Without a Broker
If you’ve decided to sell a small business without a broker, here’s a step-by-step guide to ensure you get the best results.
1. Prepare Your Business for Sale
Before listing your business for sale, ensure that it’s in the best possible shape. Buyers are looking for well-organized businesses with clear financials, strong operations, and minimal liabilities. Here’s what you need to do:
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Financial Clean-Up: Make sure your financial records are up to date, including profit and loss statements, balance sheets, and tax returns for the last 3 to 5 years. Clear financial records will help potential buyers understand the business’s financial health.
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Review Operations: Streamline operations to make the business as attractive as possible. Ensure that processes are efficient and that any operational issues are addressed.
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Inventory and Assets: Make a detailed inventory list of your business’s assets, including equipment, real estate, and intellectual property. This will help you set a realistic asking price.
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Legal Documentation: Organize legal documents like contracts, employee agreements, leases, and licenses. Make sure everything is in good standing and easy to transfer to the buyer.
2. Determine Your Business’s Value
Properly valuing your business is one of the most crucial steps when selling a small business without a broker. You need to set a fair and realistic price to attract serious buyers while maximizing your return. Here’s how to go about it:
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Business Valuation: Use valuation methods like earnings-based (EBITDA), asset-based, or market-based approaches to determine your business’s value. This will help you establish a price that reflects the business’s worth.
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Hire a Professional: If you’re unsure about how to value your business, you can hire a professional appraiser to get an accurate valuation. This can help you avoid overpricing or underpricing your business.
3. Market Your Business for Sale
Once you’ve determined the value of your business and prepared it for sale, it’s time to start marketing it to potential buyers. As you’re selling without a broker, you’ll need to do this on your own. Here’s how:
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Leverage Your Network: Start by reaching out to your network—industry contacts, employees, suppliers, and customers who might be interested in buying your business.
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Online Marketplaces: List your business for sale on online platforms like BizBuySell, BusinessBroker.net, or Flippa. These platforms attract potential buyers who are looking for small businesses to purchase.
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Industry-specific Listings: If your business operates within a specific industry, look for niche platforms where you can list your business for sale, such as trade associations or industry websites.
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Social Media and Website: Promote the sale of your business through your website and social media channels. This can attract buyers who are familiar with your brand and business.
4. Screen Potential Buyers
Not all buyers are created equal. It’s essential to screen buyers to ensure they are financially qualified and serious about purchasing your business. Here’s what you need to check:
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Proof of Funds: Ask buyers for proof of funds or financing to ensure they have the ability to purchase your business.
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Buyer’s Motivation: Understand why the buyer is interested in your business. Are they looking for a quick flip, or do they plan to grow and expand it?
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Experience and Skills: Ensure that the buyer has the necessary skills and experience to run the business successfully. If the buyer lacks industry experience, they may not be the right fit.
5. Negotiate the Sale
When selling a small business without a broker, negotiation will be one of the most critical steps. It’s where you’ll finalize the terms of the deal, including price and payment structure. Here are key points to discuss:
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Sale Price: Based on your business valuation, negotiate a fair price that reflects the business’s worth.
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Payment Structure: Decide whether you will accept a lump sum payment, seller financing, or an earn-out agreement based on future performance. Be clear about the payment terms and timeline.
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Transition Period: Buyers often require a transition period where you’ll help them understand the operations of the business. Agree on the duration and scope of your involvement.
6. Finalizing the Sale
Once the terms have been agreed upon, it’s time to finalize the deal. Here’s what you’ll need to do:
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Draft the Sales Agreement: Work with a lawyer to draft the sales agreement. This should include all terms and conditions of the sale, including payment structure, assets included in the sale, and transition details.
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Transfer Ownership: Complete all necessary paperwork to transfer ownership of the business to the buyer. This may include transferring business licenses, intellectual property, leases, and employee agreements.
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Complete the Financials: Ensure all financial aspects of the sale are completed, including paying off any business debts and settling taxes related to the sale.
Conclusion: Selling Your Small Business on Your Own Terms
Selling your business without a broker is a great way to save on fees, retain control, and maximize your profits. While the process requires effort and preparation, it’s entirely possible to navigate the sale independently and successfully.
By following these steps and understanding the key elements involved in the sale, you can ensure that you get the best possible outcome when selling your small business. If you need further guidance, don’t hesitate to consult with a financial or legal advisor to ensure a smooth and profitable sale.