Most business owners spend years building something, then spend about four weeks trying to sell it — and wonder why the deal falls apart or they leave money on the table. If you're thinking about selling in the next one to three years, the time to start preparing is now.

The first thing I tell clients who are considering a sale: get your house in order before a buyer ever comes looking. That means clean, accurate financial records for at least three years. Buyers and their lenders will scrutinize those numbers. If you've been running personal expenses through the business — and a lot of small business owners do — you need to work with your accountant to recast those financials so the true profitability is visible. Sellers lose buyers constantly because the books look messy, even when the underlying business is strong.

Second, your contracts need to be in writing and up to date. Handshake deals with long-term clients may work fine while you're running the business, but they're worth almost nothing to a buyer. If your five best customers have never signed a formal agreement, that's a problem we need to fix before you go to market. Same goes for vendor relationships and any licensing or distribution arrangements.

Third — and this one surprises people — think hard about your key employees. A buyer is often paying for your team as much as your book of business. If your operation depends on two or three people who have no employment agreements and no non-solicitation clauses, a sophisticated buyer is going to discount your price or walk away entirely.

Finally, understand your entity structure. How you're organized affects how the sale is taxed, whether it's structured as an asset sale or a stock sale, and how clean the transaction looks to the buyer's attorney. This isn't something to sort out at the closing table.

Selling a business is the largest financial transaction most owners will ever do. It deserves real preparation. If you're thinking about an exit, let's talk now — not when you're already under pressure to close.