Key Takeaways
- Exit planning should start 3 to 5 years before you intend to leave the business
- A trade business is more valuable when it can operate independently of the owner
- Strong financials, recurring revenue, and documented systems increase sale value
- Buyers are looking for businesses with predictable cash flow and low reliance on key individuals
- Early planning gives you more options, higher value, and a smoother transition
If you own a trade business—whether you’re a plumber, electrician, builder or landscaper—chances are you’ve been head down, tools up for years. But what’s your plan when it’s time to step away?
For many tradies, the business is not just their livelihood but also their largest asset. Yet most wait too long to think seriously about how and when to exit. The result? Rushed decisions, undervalued sales, or businesses that simply wind down without realising their full potential.
The good news is that with proper planning, your trade business can be a valuable and sellable asset. Here’s how to start thinking about your exit and what steps to take now for the best outcome later.
1. Start with the End in Mind
Most business owners don’t plan to exit until something forces them to—retirement, health issues, burnout or changing life circumstances. But the best outcomes happen when you treat your business like something you’re going to sell, not just something you work in.
Start by asking yourself a few key questions:
- When would I ideally like to exit the business?
- What would a successful exit look like—sale to a competitor, employee, or family member?
- How much would I need to retire or fund my next venture?
Having a clear target helps shape the financial and operational decisions you make today.
2. Build a Business That Works Without You
One of the biggest challenges in selling a trade business is owner dependency. If the business can’t run without you on the tools or managing every job, buyers will see it as high risk.
To create a valuable, saleable business:
- Develop a leadership team or at least a capable 2IC
- Train staff to handle operations and customer relationships
- Systemise your quoting, scheduling, and job management processes
- Use cloud-based tools that give visibility and control to new owners
The more you can step away from daily operations without things falling apart, the more attractive your business becomes.
3. Get Your Financials in Order
Reliable financial data is critical for attracting serious buyers and achieving a good sale price. If your books are messy or inconsistent, it raises red flags—even if your business is profitable.
Work with an accountant to ensure:
- Your financial statements are accurate and up to date
- Income and expenses are clearly categorised
- Personal expenses are separated from business costs
- Job profitability and margins are being tracked properly
A clear financial picture builds buyer confidence and gives you leverage in negotiations.
4. Focus on Recurring and Predictable Revenue
Buyers place higher value on businesses with steady, recurring income rather than one-off projects. If your business is primarily project-based, consider ways to add more consistency to your cash flow.
This might include:
- Service contracts or maintenance agreements
- Regular clients with repeat work
- Building relationships with builders or commercial clients
Recurring income reduces the perceived risk for buyers and improves your business valuation.
5. Document Everything
A well-documented business is easier to transition. It gives the new owner the confidence that they can step in without the wheels falling off.
Start by putting together:
- Job descriptions for staff
- Checklists and workflows for quoting, invoicing, scheduling and customer service
- Details of supplier and client contracts
- Equipment and asset registers
Having an operations manual isn’t just useful for a future sale—it makes your current business more efficient too.
6. Consider Who the Buyer Might Be
Your ideal buyer could be:
- A competitor looking to expand their footprint
- A supplier or contractor who wants to bring work in-house
- An ambitious employee ready to step up
- A family member wanting to continue the legacy
Each type of buyer has different priorities. Understanding what they value helps you prepare your business accordingly and structure a deal that works for both parties.
7. Get Professional Advice Early
Exiting a business is not something you should do alone. It’s a complex process with legal, financial, and emotional aspects. Surround yourself with a team that may include:
- An accountant or business advisor to prepare financials and tax strategies
- A solicitor to handle legal agreements
- A broker to help market and sell the business (if needed)
Even if you’re 3 to 5 years away from a potential sale, a good advisor can help you build a roadmap that maximises value and avoids costly mistakes.
Final Thoughts
Selling your trade business may feel like a distant goal, but the decisions you make today directly affect how easy, profitable and stress-free that process will be.
Exit planning isn’t just about walking away with a cheque; it’s about creating a business that others want to buy, and that you’re proud to hand over. The earlier you start, the more control you have over your outcome.
If you’re ready to start planning your exit (even if it’s still years away), now’s the time to take that first step. Call Toyne today start planning.
