You’ve worked hard for the last 30-plus years building a business that would make anyone proud. The business has been good to you and your family; it paid for your house, your cars, your kids’ private schools and college tuition, etc. Now that the kids are out of school and making their own lives, you want to slow down and take some time off to do some traveling with your spouse. Or maybe spend more time on the golf course or out in the boat fishing. You’ve decided it’s time to sell your business.

So, where do you start? Every newspaper you pick up and every headline on television, radio or the Internet is talking recession. The economy is tanking – or so everyone says. Is it possible to sell your business in a sluggish economy? Absolutely!

The business market has changed. Buyers are more educated and more discriminating than ever. A large percentage of the businesses listed for sale never sell. If you want to sell in a down economy, it’s more crucial than ever that you be properly prepared.

First, you must have the right mindset. Selling a business is a process and not an event.

You must understand that businesses do not sell over night. The national average from the listing date through close of escrow is approximately 7.9 months. The more prepared you are in advance, the higher the probability that yours will be one of the businesses that sells sooner rather than later.

Second, there is a substantial amount of documentation that is required to sell a business. Have your documents available and in order. Generally a Buyer will want to see tax returns for the past three years, profit and loss statements for the past three years, an interim profit and loss statement and balance sheet, list of hard assets—furniture, fixtures, equipment and machinery— that will be included in the sale, an inventory report, copy of the lease, etc.

Many business owners don’t want to provide tax returns because their accountants have done such an exemplary job of tax mitigation that the business appears to be making very little if any profit at all. Not to worry – a good business broker knows how to recast the tax returns to show the buyer the discretionary earnings available to the seller.

Third, hire a business broker to represent you. Many business owners mistakenly hire residential or commercial real estate agents because they don’t know that business sales is a specialty. Real estate agents are trained to sell property, such as houses, office buildings, strip malls, etc. They pull up similar properties in an area to determine a price, put a sign up in front of the property and list it in the multiple listing system.

Business brokers are trained to sell businesses. They understand each business is valued on its own merits and they have been trained on how to perform that valuation. They understand the confidential nature of business sales and know how to market your business without your employees, vendors, customers or competitors finding out about the sale. Your accountant doesn’t represent you in court, your stock broker doesn’t prepare your tax returns and your real estate agent shouldn’t sell your business. Best results come from hiring the right professional for the job.

Fourth, continue operating and growing the business. All too often, a business owner will semi-retire before deciding to sell the business. Then the seller will want to price the business based on the amount of income it generated when he/she was really working it. Buyers will buy a business because they see the potential. However, they are not willing to pay for the revenue they have to create and/or re-create. If the business generated $1 million annually five years ago and is now generating $400,000 annually, guess which number the buyers will be using?

Finally, make your business look well organized and well managed. Work with your business broker to price it correctly. Buyers are more likely to pay your price when the business appears well managed, your paperwork is in order, your documentation substantiates your claims of gross revenue and net profit, and in general, your documentation supports your asking price.

Tawnya Gilreath is the managing broker of First Choice Business Brokers in Van Nuys. First Choice is a national company established in 1994, and has sold businesses ranging from $20,000 to $143 million. Tawnya can be reached at 818-781-0082 or on the web at www.SFVBizBroker.com.