Most business owners pour their heart, soul, and years of hard work into building something they believe has value. Yet, when it comes time to exit, a shocking statistic stands in the way: 80% of businesses never sell.
That’s right. Four out of five business owners hoping to cash out and move on to their next chapter end up disappointed. Instead of a profitable sale, they either shut down, walk away with nothing, or settle for far less than they anticipated.
Why does this happen? And more importantly—how can you avoid being part of that 80%?
In my book, What Is Your Exit Strategy?, I break down why most businesses fail to sell and what you can do today—whether you’re looking to exit in one year or ten—to increase your chances of a successful, profitable transition.
The Hard Truth: Why Most Businesses Don’t Sell
Many business owners assume that when they’re ready to sell, there will be buyers lining up to take over. But the reality is, most businesses don’t meet the criteria that buyers (or investors) are looking for. Here are the biggest reasons why:
The Business Is Too Owner-Dependent
If the business can’t function without you, it’s not really a business—it’s a job. Buyers don’t want to purchase a business that falls apart the moment the owner steps away.Too Dependent on a Few Customers
If most of your revenue comes from just a handful of clients, your business is risky. What happens if one or two of them leave? Buyers look for customer diversification to ensure long-term stability.Poor Financial Records
Messy books, inconsistent revenue, and a lack of financial transparency are huge red flags for buyers. If they can’t clearly see profitability and stability, they won’t take the risk.Lack of Scalability
Many businesses generate just enough revenue to support the owner’s lifestyle—but not enough to attract serious buyers. A business must show potential for growth beyond its current state.No Clear Systems or Processes
If everything runs on tribal knowledge rather than documented, repeatable processes, a buyer will struggle to see how they can take over and maintain success.Industry Disruptions: AI, Robotics Market Changes
The world is evolving fast. If your business is in an industry at risk of being disrupted by AI, robotics, or changing regulations, buyers may hesitate. If your business lacks adaptability, it’s harder to sell.Unrealistic Valuations
Many owners overestimate what their business is worth, expecting top dollar when their business lacks the fundamentals buyers need to justify the investment.
How to Become Part of the 20% That Sells
The good news? Your business doesn’t have to be part of the 80% that fail to sell. With the right strategy, you can position your business as an attractive, valuable asset that buyers want.
Start with these key steps:
Make Your Business Less Owner-Dependent
Develop a leadership team, delegate responsibilities, and build systems so the business can run without you.Diversify Your Customer Base
Reduce reliance on a few key clients by expanding your market reach and customer acquisition strategies.Clean Up Your Financials
Work with a professional to ensure your books are accurate, clean, and ready for buyer scrutiny.Develop a Scalable Model
Identify ways your business can grow beyond its current customer base or revenue ceiling.Document Your Processes
Create Standard Operating Procedures (SOPs) for key operations to make your business easier to transition.Adapt to Industry Changes
Stay ahead of technology trends and market shifts to ensure your business remains relevant and competitive.Understand Your Value Market Trends
Get a professional valuation and align your expectations with market reality.
What’s Your Exit Strategy?
Most business owners don’t think about selling until they’re already burned out or ready to retire. But by then, it’s often too late. The best time to plan your exit isn’t when you’re ready to leave—it’s years in advance.
That’s why I wrote What Is Your Exit Strategy?—to help business owners like you take control of their future, avoid the common pitfalls, and maximize the value of their business when it’s time to exit.
Are you ready to build a business that sells—rather than one that just fades away?
Let’s start the conversation. Drop a comment below or message me to discuss your exit strategy!
