How do I sell a home-based business?
Separate the business’s records and costs from your household, make the business movable by listing its address, phone, storage and equipment, and reduce how much depends on you. Show buyers the operation without opening your home, and be clear about what they will take away at closing.
A business that runs from your home is hard for a buyer to picture owning. They cannot buy your house, and much of what they see is tied up with how you live. The goal is a business that someone else could run.
Separate the books
Buyers look closely at the numbers, and shared costs blur them. Sort out which expenses belong to the business and which are personal, and keep clear records. Ask your accountant to prepare statements a buyer can follow. Clean records let you explain your results without long, awkward conversations about what was really spent.
Make the business movable
Write down everything that would move: the equipment, the stock, the phone number, the website, the supplier accounts and the processes you follow. Decide where the work would happen after you leave. If customers know your home address, plan how they will be told about any change, and ask your lawyer about the transfer of contracts.
Reduce reliance on yourself
Buyers worry when everything runs through one person. Document your routines, introduce key customers to others where you can, and offer a handover period. This is one reason preparing to sell early helps, since it gives these changes time to show in your records.
Showing buyers around
You do not need to open your home to everyone. Share records and photos of the equipment first, require a signed confidentiality agreement, and meet serious buyers at a neutral place. Invite only qualified buyers to see the setup, and keep family areas private. See keeping a sale confidential.
Related reading
15 pages on the same subject, grouped by topic.
Buying
Selling
- Expert answerHow does selling a business actually work, start to finish?
- Expert answerWhat should I do first when I’m thinking about selling my business?
- Expert answerHow far in advance should I prepare to sell?
- Expert answerHow do I keep my business sale confidential?
- Expert answerHow do I claim a listing for my business?
- Expert answerCan I quietly test the market without deciding to sell my business?
- Expert answerHow do I sell a phone repair shop?
- Expert answerHow do I sell a funeral home?
- Expert answerHow do I sell a cell phone store?
- Expert answerHow do I sell a mobile home park by owner?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canada Revenue AgencyGovernmentBusiness-use-of-home expenses
- 02Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
- 03Business Development Bank of CanadaGovernmentHow to Find the Right Buyer for Your Business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.