Selling Your Handmade Business: What You Need to Know

Selling Your Handmade Business: What You Need to Know

If you've built a successful handmade business, there may come a time when you consider selling it. Whether you're looking for a new challenge, wanting to cash out after years of hard work, or simply ready for a new chapter, selling your business can be a rewarding—but complex—process. In this guide, we'll break down what you need to know to get started, tools to help you value your business, and marketplaces where you can list it for sale. Plus, I’ll share my own experience of selling a multi-six-figure brand.

1. Know Your Business's Value: How Much Is It Worth?

Before you even think about listing your handmade business for sale, you need to know how much it's worth. Valuing a business isn't as straightforward as it may seem. It involves considering several factors, including revenue, profit margins, growth potential, brand strength, customer base, and even the uniqueness of your products.

Tools for Valuation:

• Empire Flippers Valuation Tool: Use this handy tool to get a quick snapshot of what your business might be worth based on key financial metrics. It provides an estimated valuation range that helps you understand where you stand in the marketplace. You can check it out here.
  

Valuation is crucial as it sets realistic expectations and helps you negotiate better with potential buyers.

2. Choose the Right Marketplace for Selling Your Business

Once you have a ballpark figure for your business’s value, the next step is to choose a marketplace where you can list it for sale. Here are some popular platforms for selling online businesses:

• Empire Flippers

  • What It Is: A well-known marketplace specializing in buying and selling established online businesses.

  • Pros: Empire Flippers thoroughly vets all listings, ensuring that businesses are legitimate and providing confidence for both buyers and sellers. They offer valuation services, handle the negotiation process, and provide escrow services.

  • Cons: Empire Flippers charges a commission fee, and their vetting process can be quite rigorous, which may not suit all sellers.
    

• Flippa

  • What It Is: A popular platform for buying and selling digital assets, including websites, apps, and eCommerce stores.

  • Pros: Flippa offers a wide audience and lower entry barriers for sellers, making it accessible to a range of businesses.

  • Cons: The platform is less curated, which means there might be lower-quality listings. As a result, it requires more effort on the seller's part to stand out.
    

My Experience: Having bought and sold several businesses over the years, I’ve navigated the ins and outs of these platforms. I even sold a multi-six-figure brand on eBay (yes, eBay!), and it’s still thriving today! My biggest tip? Make sure to have your financials, metrics, and growth story well-documented to attract serious buyers.

3. Preparing Your Business for Sale

When you're ready to list your business, preparation is key. Here are a few steps to consider:

• Organize Your Financials: Have clear, accurate records of your sales, expenses, and profit margins. This transparency is crucial for building trust with potential buyers.
  

• Optimize Your Operations: Streamline your processes and show potential buyers that your business is easy to manage.
  

• Create a Growth Plan: A documented plan outlining potential growth strategies for your business can significantly increase its value.
  

4. Pros and Cons of Selling a Handmade Business

Pros:

• Cash Out: Selling allows you to turn your hard work into capital that can be invested elsewhere.

• Move On to New Ventures: If you’re ready for a new challenge, selling your business gives you the freedom to explore new opportunities.

• Ongoing Legacy: If you find the right buyer, your business can continue to grow and thrive even after you’ve moved on.

Cons:

• Emotional Attachment: Letting go of a business you've built from scratch can be tough emotionally.

• Finding the Right Buyer: It can take time to find a buyer who values your business as much as you do and who will maintain its integrity.
  

Ready to sell your handmade business but don't know where to start? Try the Empire Flippers Valuation Tool to get an instant valuation.

Final Thoughts:

Selling your handmade business is a significant decision that requires careful planning and consideration. By understanding your business's value, choosing the right marketplace, and preparing adequately, you can make the process smoother and more profitable.

Question for You:

Have you ever thought about selling your handmade business? What steps are you taking to prepare for it? Share your thoughts in the comments below.

Now that you have a solid understanding of what it takes to sell your handmade business, the next step is mastering the art of negotiation. Learn how to navigate this crucial phase with confidence by checking out our guide on How to Handle Negotiations When Selling Your Handmade Business.