1. Determine a Realistic Price Range

If you price your business too high, you'll scare away buyers. If you price it too low, you'll lose
out. To figure out a range that's realistic, you can use one of several methods -- and then maybe
blend the results. For example, you can base the price on the value of the business's assets, and
add in a sum for the goodwill the business has developed. Or you can see how much comparable
businesses in your industry and locale have recently sold for. Or you can use an industry formula
(for example, a value based on the number of units sold annually or a multiple of average
earnings).

2. Understand the Tax Consequences

Taxes can take a huge bite out of the money you receive for your business. It pays to know just
how big that tax bite will be -- and to try to lower it, most likely with help from a CPA or other
tax expert.

Your tax bill will be influenced by two key factors: How your business is legally set up and -- in
the case of a corporation or LLC -- whether you're selling the assets or the entity. Sales of all
sole proprietorships and almost all partnerships are asset sales. So are the sales of many
corporations and LLCs.

3. Look Good for a Sale

The getting-ready process includes not only sprucing up your premises, but getting your
numbers in good shape. Consider recasting your tax-return numbers for prospective buyers.
This can involve, for example, adding back to your profits discretionary expenses such as
medical insurance for you and your family, travel and entertainment, business vehicles,
memberships and subscriptions, and salaries and bonuses paid to family members.

In recasting your tax numbers, you're not deceiving either the IRS or prospective buyers. You're
simply pointing out that the buyer may prefer not to spend money on some of these items in the
future.

4. Seek Potential Buyers

If your business is well known, word that it's for sale may be enough. Or, possibly someone
close to you -- an employee, a friend, or a customer -- could be a prospect. But more likely,
you'll need to reach out to a bigger pool. This often includes putting ads in newspapers and trade
publications, and on business-sale websites like The business Broker Journal.

5. Confidentiality

Confidentiality is one of the most important tools when it comes to selling your business and should not be taken lightly. It is extremely important when selling your business to keep as much information as possible confidential. This means, it is not a good idea to advertise the business name or address for sale because it can negatively affect your business operations. If existing employees find out your selling they may feel their job is in jeopardy and may begin looking for another job. The same goes for customers or vendors, if they learn your business is for sale, they may feel like your business is closing or that they are loosing the business relationship they have built with you over the years.

6. Hire A Business Broker

A Business Broker is a professional business advisor experienced in buying and selling existing businesses. Business Brokers generally work for commission only and are paid by the seller. Fees are usually around 10 % of the purchase price with a minimum fee between $8,000 & $20,000.

There are many benefits to hiring an experienced Business Broker.

1) Brokers already have established relationships with people interested in buying existing businesses.

2) Brokers will handle the transaction from start to finish.

3) Brokers know how to keep your business sale confidential as well as pre-screen buyers.

4) Brokers will advertise your business for sale confidentially using their own money to do so.

5) Brokers work for the seller and are paid a commission only after selling the business.

6) Brokers will help you determine the best price to list your business for sale.

7) Brokers will help you negotiate the best price for a business. Often much higher than you would get if     selling your business by yourself.

8) Brokers will help the buyer with financing solutions.

9) Brokers will help the buyer and seller through the due diligence process.

10) Using a broker in general will save you money, time, and stress.

7. Negotiate Your Deal

In working out the terms of the sale, some key issues include whether you'll sell the business
entity or just its assets, what assets (like a truck) you want to keep, and how the buyer will pay
you (usually, a down payment plus installments).

8. Sign a Sales Agreement

You'll need to put the deal in writing. Among other things, your agreement should list and value
the assets the buyer is purchasing, list any contracts the buyer is assuming, and include
protections that assure you'll get paid the full sale price. If you attempt the first draft of the sales
agreement yourself, have it reviewed by a business lawyer to make sure you've covered all the
bases.

9. Plan for the Closing

The closing is the meeting at which you transfer the business to the buyer. To reduce last-minute
hassles, make a checklist of all the papers you and the buyer will need to bring -- everything
from the documents and money associated with the transfer to your alarm codes, keys, and
customer lists.

10. File Paperwork With the IRS

After the sale, you and the buyer need to jointly complete IRS Form 8594, Asset Acquisition
Statement and file it with your tax returns for the year of sale.