How do I sell a soap or candle business I run from home?
Start by separating household and business costs in your records, then list what moves with the sale: moulds, pots, scales, stock, packaging, the brand and the shop accounts. Show the process without opening your home, and help the buyer think through where production will happen next.
Selling a business that lives in your kitchen or spare room raises problems that a shop owner never faces. Your records mix household and business life, the equipment shares space with your family, and a buyer cannot simply move into your house. These problems can be handled with some planning. Planning ahead gives you time to separate household and business records.
Separate household costs from business costs
Buyers want to know what the business earns without your household in the picture. Go through your records and mark which costs belong to the business and which are personal. Utilities, space and supplies bought on a personal card are common blurs. Your accountant can help you present clean records and explain how home-related costs are treated. Do not guess about this part.
List what moves and what stays
Make a plain list. In the sale you might include moulds, melting pots, scales, thermometers, wax and oils on hand, finished stock, packaging, labels, the brand name, photographs, the website and the shop accounts. What stays is the house itself, shared appliances and anything you will keep. Write the list down and attach it to the offer. The home-based business page covers the wider picture.
Show the operation without opening your home
You do not have to give strangers a tour. Photograph the workspace, record a video of a batch, and walk the buyer through your process on a call. When a serious buyer is ready, you can arrange a supervised visit after a confidentiality agreement is signed. Choose a time when family members are away, and keep personal items put away.
Help the buyer plan production space
A buyer may not want to make candles in your house, and may need a different space. Be ready to explain the steps, the supplies and the time each stage needs, so they can plan a new workspace. Offer to help during a handover period. Ask your lawyer to review anything you promise in writing about training or support.
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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 CanadaGovernmentHow to minimize negotiations when selling your business
- 03Business Development Bank of CanadaGovernmentWhat is inventory
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