Selling a business is a big deal. There are things you can do to maximize your value. However, the sooner you get started, the more options you have to get things in place. Wait until the last moment and there’s much less that you can really do.

Ideally, we suggest getting started in the process at least two years ahead of time.

Compare this to selling a house where there’s probably work needed on the house in some areas before it’s sold. You wouldn’t just put a house up on the market right that weekend. You’d have the place tidied up. You’d have maintenance done. Or, in particular, you might have some things fixed ahead of time.

A business is a different matter though. Unlike a house, nothing will quite ever be perfect with a business and some projects in a business can take longer to straighten out, all the more reason to get a jump on it sooner. For example, there might be some areas to shore up in your operating performance. If you can show a couple years of positive history, such as improved gross margins that will go a long way. That’s something you can’t just do overnight.

There’s other differences compared to the house analogy. One is that selling a business is much less suitable. You can’t go to find a listing of companies like you can homes on the market. Pricing is much less defined. People play an important part of the equation. Finally, there could be a wide range of potential buyers as well. There’s also a wider array of intermediaries to help you sell. Last, tax issues are much more complex. In addition, when you’re selling a house, you may also be jumping into buying another one. When selling a business, you may not be as likely to go right into buying another business. There may be other options that you’ll pursue.

In other words, there is a lot to think about for selling a business. Get a jump on it early. Start thinking a couple years ahead and you’ll be in much better shape when the time comes.