So, You’re Thinking About Selling? Let’s Talk Real Numbers.

Alright—real talk for a sec.
Selling your business isn’t just about planting a big “For Sale” sign on your website and waiting for a swarm of hungry buyers to show up like it’s Black Friday. If only.

I’ve been through this rodeo more than once. I’ve coached folks who were ready to walk away from their business yesterday—burnt out, mentally checked out, and completely unaware that they were leaving tens (sometimes hundreds) of thousands on the table. Why? Because they hadn’t done the work to bump up their business’s valuation before the sale.

You wouldn’t sell your house with the gutters falling off and paint peeling, right?
Same goes here. The business you’re about to sell? It’s an asset. A big one. You’ve gotta treat it like the golden goose it is—polish it, prep it, make it shine.

Here’s how I learned to do that—the hard way—and how you can skip the faceplants and actually increase what your business is worth before you shake hands on a deal.

1. Start With the End in Mind (No, Really)

I had this buddy—let’s call him Mike. Ran a killer HVAC company, pulling in over $1.2M a year. Rock-solid team. Loyal client base. Good margins.

But when it came time to sell? Crickets.
Turns out he was so focused on growing his revenue that he completely ignored the stuff buyers actually care about.

Things like:

• Recurring revenue

• SOPs (standard operating procedures)

• Clean, accurate financials

• Owner independence (a.k.a. “Can this thing run without you?”)

If you want buyers to take your business seriously, it’s gotta look like a well-oiled machine that prints money whether you’re there or sipping margaritas in Tulum.

2. Clean Up Your Business Books—No More Shoebox Accounting

Okay, this one’s big. HUGE.

If you have spent any time reading the blog at Business Broker News then you know that the very first thing a serious buyer will do is look at your financials. If your P&L looks like a Jackson Pollock painting—or worse, if you don’t even have one—buyers are gonna bounce. Fast.

What helped me level up?
✅ Hiring a real bookkeeper.
✅ Getting 2-3 years of clean, GAAP-compliant financials.
✅ Separating personal expenses (goodbye, “business” jet ski ).
✅ Tracking key metrics: gross profit, net profit, customer acquisition cost (CAC), LTV, etc.

Once I had that dialed in, conversations changed. Buyers started taking me seriously. And they started offering more—because they could see the value instead of guessing.

3. Build a Team That Doesn’t Rely on You

Here’s the painful truth:
If your business can’t survive without you, it’s not really a business—it’s a job you happen to own.

Ask yourself: If I disappeared for 3 months, what would happen?
Would things fall apart? Or would your team keep the wheels turning?

I had to eat some humble pie here. I was the bottleneck in every decision. Sales? Me. Customer service? Me. Payroll? You guessed it—me.

Once I started delegating, documenting processes, and empowering a manager to run daily ops… not only did my sanity return, but buyers perked up. They saw the business as transferable, not just a glorified freelance gig.

4. Diversify Your Revenue (aka “Don’t Put All Your Eggs in Facebook Ads”)

One client I worked with had a great e-comm store—but 90% of their traffic came from one Instagram account. One algorithm tweak, and… poof.

Buyers hate that kind of risk. They want to see multiple revenue streams. So:

• If you’re e-comm, add a wholesale or subscription channel.

• If you’re service-based, build in retainer clients.

• If referrals are your lifeblood, systemize outbound and SEO.

Redundancy = security = higher valuation. Period.

5. Lock In Contracts & Recurring Revenue

When I sold my consulting firm, one thing that gave me major leverage was a stable base of recurring monthly retainers.

Instead of chasing one-off gigs, we built 6- and 12-month service contracts. That made cash flow predictable—and buyers love predictability.

So, ask yourself:
Can you turn one-time sales into ongoing subscriptions?
Can you upsell support or maintenance plans?
Can you license your IP or create a membership tier?

The more recurring revenue you have, the higher your valuation multiplier climbs.

6. Strengthen Your Brand’s Digital Footprint

Your brand isn’t just your logo or your color scheme. It’s your online reputation, your reviews, your social proof.

I’ll be honest—I used to neglect this. My website looked like it was built during the MySpace era. But when I revamped it, invested in SEO, and racked up 5-star Google reviews, I noticed a shift.

People started coming to me—including buyers.

Don’t underestimate the power of:

• A clean, modern website

• Active, engaged social media profiles

• A blog or newsletter that showcases thought leadership

• Real customer testimonials and case studies

It adds weight to your brand. It tells buyers, “This isn’t a side hustle. This is the real deal.”

7. Know Your Numbers and the Story Behind Them

During negotiations, you’re going to be asked some uncomfortable questions:

• “Why did revenue dip in Q3 last year?”

• “What’s your churn rate?”

• “Why are margins thinner in your west region?”

And if you say, “Uh… I’m not sure,” you’ve lost half the battle.

Smart buyers don’t just want numbers—they want the narrative. They want to understand your decisions, your pivots, your growth levers. So be ready.

Even better: put together a pitch deck or a simple info packet that walks through the business, the financials, the team, the vision. It shows you’re not just trying to bail—you’re proud of what you’ve built. And that makes all the difference.

Wrapping It All Up: This Ain’t a Garage Sale

Let me say this louder for the folks in the back:
Your business is probably worth more than you think—if you prepare it properly.

I’ve seen people double or triple their valuation just by tightening systems, cleaning up their financials, and repositioning their offer before going to market. And yeah, it takes effort. But it’s so much better than walking away with a fraction of what your business is truly worth.

Look, I’m not saying you have to go all Fortune 500 here. But if you treat your business like an asset—and not just a job—you’ll be amazed at how many doors open.

Key Takeaways

• Clean financials = serious buyers

• Owner independence boosts transferability

• Recurring revenue = higher valuation multiple

• Strong branding & online presence adds credibility

• Data storytelling gives you leverage in negotiations

If you’re even thinking about selling in the next 12–24 months, start this process now. It’s never too early—and when that perfect buyer shows up, you’ll be ready to cash out with confidence.

And hey, worst case? You end up with a more profitable, streamlined business. Not exactly a loss.

Let’s talk about something most entrepreneurs ignore until it’s too late: customer churn.

You can have the best product, the slickest marketing, and even killer revenue growth—but if customers are slipping out the back door faster than you can replace them, your business valuation is taking a silent beating.

I’ve seen it firsthand. A buddy of mine built a SaaS company with $5M in annual revenue. On paper, it looked like a rocketship. But when he tried to sell? Buyers tore into his churn rate like wolves. Turns out, losing 30% of your customers every year isn’t exactly a selling point.

So, let’s break down why churn destroys valuation and—more importantly—how to stop the bleeding.

Why Investors and Buyers Obsess Over Churn

If you’ve ever pitched to investors or negotiated a sale, you know they don’t just care about how much money you make—they care about how sticky that money is.

Here’s the brutal truth: High churn = high risk. And in the world of valuations, risk is the enemy.

1. Recurring Revenue Isn’t Really Recurring If Customers Leave

You might brag about your $100K MRR (Monthly Recurring Revenue), but if 15% of those customers cancel every month, that “recurring” revenue is leaking like a sieve. Buyers don’t pay top dollar for a business that has to sprint just to stay in place.

2. Acquisition Costs Eat Your Margins

Think about it—if you’re spending $500 to acquire a customer who only sticks around for three months, you’re losing money. Now imagine scaling that. Ouch. Investors see this and immediately discount your valuation because they know your growth isn’t sustainable.

3. Churn Reveals Deeper Problems

A high churn rate isn’t just a metric—it’s a symptom. Maybe your product has bugs, your customer service sucks, or your onboarding is confusing. Whatever the reason, buyers see churn as a red flag screaming, “This business is broken!”

You can learn a lot more about this by following the Business Broker News X page.

How Churn Directly Impacts Valuation

Let’s get nerdy for a second. Most businesses are valued on a multiple of revenue or EBITDA (earnings before interest, taxes, depreciation, and amortization). But that multiple isn’t fixed—it’s adjusted based on risk.

The Valuation Math No One Talks About

• Low churn (≤5% monthly): Buyers love predictability. You might get a 6x–10x EBITDA multiple.

• Moderate churn (5–10% monthly): Now they’re nervous. Expect 3x–5x.

• High churn (>10% monthly): You’re in the danger zone. Multiples drop to 1x–3x, if you’re lucky.

I once advised a company with $2MARRbuta12$10M. Reality check? No serious buyer would offer more than $3M—because they’d have to rebuild the entire customer base in less than a year.

How to Fix Churn (And Save Your Valuation)

Okay, enough doom and gloom. Let’s talk solutions.

1. Figure Out WHY Customers Are Leaving

This sounds obvious, but most founders guess instead of asking. Send exit surveys, run cancellation flow analyses, and—here’s a wild idea—actually call some lost customers. You’ll uncover patterns fast.

2. Improve Onboarding

A shocking number of customers churn simply because they don’t know how to use your product. Fix this with:

• Better tutorials

• Personalized walkthroughs

• Proactive check-ins

3. Build a “Stickier” Product

Netflix doesn’t have high churn because you forget you’re subscribed. Make your product indispensable. Add features that increase engagement, like:

• Customization options

• Integrations with other tools

• Regular updates that keep users hooked

4. Offer Annual Plans (With a Discount)

Customers on annual contracts churn less. Even a small discount (10–20%) can convince them to commit long-term.

5. Create a Customer Success Team

If you’re scaling, you need people whose only job is to make sure customers succeed. This isn’t just support—it’s proactive relationship-building.

Final Thought: Churn Is a Silent Killer

Most entrepreneurs focus on growth at all costs. But if you’re not paying attention to churn, you’re building on quicksand.

The good news? Reducing churn is one of the fastest ways to increase valuation. Fix it before you pitch investors or sell, and you’ll not only get a better multiple—you’ll sleep better at night.

Now, go check your churn rate. And if it’s ugly? You know what to do.

What’s your biggest churn challenge? Drop a comment below—let’s troubleshoot together.

Why I Thought I Could Do It All Myself (Spoiler: I Couldn’t)

You ever have one of those “I got this!” moments? Yeah… me too. About three years ago, I decided it was time to start thinking about selling my business. I’d spent the better part of 15 years building it from scratch—blood, sweat, caffeine-fueled nights, the whole nine yards.

But when it came time to figure out how to actually get out? I did what any stubborn, prideful business owner would do. I googled “how to sell a business” and thought, “Pffft, how hard could it be?”

Turns out? Really hard.

I wasn’t just selling some old fishing boat on Craigslist; I was trying to cash out of my life’s work. And buddy, there’s no “Buy It Now” button for that.

Enter: The Exit Planning Consultant (AKA My Business-Saving Fairy Godmother)

After a few months of spinning my wheels (and nearly accepting an offer that would’ve made teenage me cry into his Ramen noodles), a buddy of mine—a guy who had sold his company for more than I ever thought possible—pulled me aside and said, “Man, you need an exit planning consultant.”

At first, I thought he was joking. Like, who needs someone to help them leave? Isn’t exiting just… walking away?

Oh, sweet summer child.

An exit planning consultant is not just someone who tells you “Good job, champ, time to hang up your boots.” They’re like the combination of a financial wizard, business strategist, therapist, and street-smart negotiator all rolled into one.

I called up a few firms, talked to some suits who felt about as authentic as a $3 bill, and finally—finally—found a consultant who spoke my language. Not in buzzwords. Not in “synergistic monetization of asset liquidity.”

He said, “Look, you built a badass business. Let’s make sure you don’t get screwed when it’s time to move on.”

Sold.

What an Exit Planning Consultant Actually Does (That You Probably Can’t)

Here’s what I learned (the hard way):

• They value your business properly. Not based on what you “feel” it’s worth (because spoiler alert: feelings don’t pay the bills).
• They clean up your books. I thought my QuickBooks file was “good enough.” It was not.
• They spot potential deal-killers. That one handshake deal I made with a supplier five years ago? Yeah, that almost tanked a seven-figure sale.
• They build a game plan. Not just “sell to the highest bidder,” but “position your company to attract the right kind of buyers.” There’s a difference, trust me.
• They coach you. Selling is emotional. Letting go is brutal. They keep you from making a dumb decision when your heart gets in the way.

It’s not like they just hand you a “Congratulations, You’re Rich!” card. It’s a process. A gritty, sometimes gut-wrenching, deeply strategic process.

The Moment I Knew I Made the Right Call

Picture this: I’m sitting across from a potential buyer, sweaty palms and all, trying to smile while they’re picking apart everything wrong with my business like it’s some used car they found a dent in.

Instead of stammering like an amateur, I had my consultant next to me, calm as a sunrise on a Kentucky morning, flipping through a binder (yes, a binder) of financials, growth projections, and clean-as-a-whistle contracts.

“Actually,” he said, sliding a page across the table, “what you’re referring to was addressed last year, and here’s the documentation.”

Buyer leaned back, nodded, and said, “Okay.”

Okay! That was the moment. That was the difference between looking desperate and looking like a guy who knew his business was worth every penny.

Lessons Learned: Why You Shouldn’t Wing It

Look, I’m a prideful guy. I built my empire (okay, maybe a “small kingdom”) with grit, guts, and Google searches. But exiting? That needed a different kind of expertise.

If you’re even thinking about selling your business someday, get an exit planning consultant in your corner.

You’ll:

• Sleep better at night.
• Avoid getting lowballed.
• Actually enjoy the exit, instead of regretting it.
• Walk away with a fat check—and your dignity intact.

Because trust me—when you sell your business, you’re not just selling a building and a brand name. You’re selling your story. And that story deserves a proper final chapter.

Key Takeaways: What to Remember When Hiring an Exit Planning Consultant

• Start Early. The best exits are planned years in advance.
• Interview Several. Don’t hire the first consultant you meet unless they “get you” instantly.
• Ask About Their Process. You want someone with a playbook, not someone “winging it.”
• Understand the Cost. Good consultants aren’t cheap—but the return on investment can be insane.
• Trust Your Gut. If they sound like a used car salesman, keep walking.

Final Thoughts: Don’t Be a Hero (Be Smart Instead)

There’s honor in building a business. But there’s wisdom in knowing when to call in help.

I walked away from my business sale not just with a check that made my knees a little weak—but with a sense of pride. I didn’t “luck” into it. I didn’t “wing” it. I built the damn thing, then I exited like a pro.

And it all started with swallowing my pride and hiring the right exit planning consultant.

If you’re sitting there wondering whether you need one? You probably do.

And your future self—sitting on a beach somewhere, sipping something cold and fruity—will thank you. ️

Why I Finally Caved and Got My Business Valued

I’ll be honest with you, friend. For years, I treated the idea of “business valuation services” like I treat kale at a buffet — politely nodding at it… while loading up on mac and cheese instead.

In my mind, business valuations were for either (a) people with way more money than me or (b) folks looking to slap a “For Sale” sign on the front door and peace out. Neither box fit my reality at the time.

But then came 2023. Cue dramatic thunder noise.

Revenue hit a weird plateau. Competitors started circling like hawks on a busted tractor. Investors I once laughed off were suddenly sliding into my inbox. And I had this gnawing thought: “Man, I have no idea what my business is actually worth.“

Spoiler alert: That’s not a good feeling.

So, against every stubborn bone in my body, I picked up the phone and booked a business valuation service. And buddy, let me tell you — it was a ride.

What Nobody Tells You About Business Valuation Services

First off, it’s not like they roll up, shake your hand, and hand you a neat little number on a cocktail napkin.

Nah. It’s more like peeling an onion in a rainstorm.

They dive deep — like, marianas trench deep — into every dusty file cabinet and half-finished spreadsheet you’ve been avoiding. (If you’re the kind of person who keeps receipts in a shoebox marked “Important Crap,” buckle up.)

Here’s what my process looked like:

• Financial Records Scrub: Three years’ worth of P&Ls, balance sheets, and tax returns. Spoiler: they found $2,300 I forgot about in an old PayPal account.
• Customer Analysis: They actually called a few clients (with my permission) and asked them — in their polite business-valuation way — whether they thought I was indispensable or replaceable.
• Market Comparison: They pulled comps like real estate agents, showing what similar businesses had sold for. (Newsflash: everyone thinks their business is worth more than it is.)
• Risk Assessment: Are you the “face” of your biz? What happens if you get hit by a bus? (Dark, but… fair.)

Each step felt a little bit like therapy — uncomfortable at times, but super necessary if you want to stop lying to yourself.

The Good, The Bad, and The “Holy Crap, I Didn’t See That Coming”

The Good:

Getting a real, defensible valuation was empowering. It gave me leverage for investors, confidence for strategic decisions, and honestly… a pep in my step I didn’t realize I was missing.

The Bad:

It stung a little. I thought my baby (my business) was a seven-figure queen. Turns out she was more like a very promising six-figure princess — and she needed some grooming to sit on the big throne.

The “Holy Crap”:

My biggest “aha” was how much risk factors into valuation. I always thought “revenue minus expenses = value,” but nope. If the business is too dependent on one customer (or worse, one person — me!), the value plummets faster than my patience at the DMV.

They didn’t just tell me a number. They showed me a roadmap to make my business more valuable — and that’s worth its weight in whiskey.

How to Choose the Right Business Valuation Service (Without Getting Ripped Off)

Now, I did not just Google “business valuation” and pick the first shiny ad. No sir.

Here’s what I learned about picking a good one:

• Ask about their methodology: If they can’t explain it like you’re five, run.
• Check their credentials: Look for Certified Valuation Analysts (CVA) or Accredited in Business Valuation (ABV). Alphabet soup, but it matters.
• Read real reviews: Yelp ain’t just for diners and dive bars.
• Demand a customized report: No cookie-cutter, “insert-your-name-here” nonsense.
• Clarify the cost upfront: Good valuations ain’t cheap, but you shouldn’t have to sell a kidney either.

The service I chose cost about $6,500 — not pocket change, but compared to the clarity it gave me, I’d call it a bargain. (Also, tax deductible. Just saying.)

Final Thoughts: Should You Get Your Business Valued?

Look, I’m not here to tell you what to do. I’m just a guy who’s eaten humble pie and seen the light.

If you’re serious about growing, selling, merging, or even just sleeping better at night knowing what your hard work is worth?

Get a business valuation.

And not “someday when things slow down.” (Spoiler: they won’t.)

Make it happen.

Because at the end of the day, your business isn’t just spreadsheets and logos. It’s blood, sweat, midnight emails, and all the crazy dreams you poured into it.

It deserves to be valued properly.

And heck — so do you.

Ready to get serious about your business’s future?

Whether you’re thinking about selling, scaling, or just keeping score — getting a professional business valuation might be the smartest move you make this year.

(Trust me: if I can survive it, so can you. )