Let’s be real—you probably didn’t start your business thinking about how you would sell it. You were too busy doing the work, taking the risks, and building something from the ground up. But if you’d like to step back eventually—whether that’s retiring, starting something new, or just slowing down—it’s time to talk about what’s next.
This is the third blog in our business transitions series, and it’s all about figuring out how to sell a small business (and a few other paths, too). For small (but mighty) businesses, transition planning doesn’t always look like what you read about in big business playbooks. You’ve got a tight-knit team (maybe just you!), deep community ties, and probably some personal relationships mixed in with the professional. That’s why choosing the right transition path isn’t just a financial decision—it’s a values-driven one.
Let’s walk through three common pathways business owners explore: selling to a third party, passing the business to a family member, and selling to employees.
Selling to a Third Party
What it is: Selling your business to someone outside of it—could be another entrepreneur, a competitor, or someone who sees potential in what you’ve built.
Why it might work for you:
- You could get a solid payout (especially if your business is profitable and has a strong reputation).
- It’s a clean break—you sell, you step away, and someone else takes the reins.
- If you don’t have an internal successor, this might be the most straightforward option.
Why it might not:
- It can be tough to find the right buyer—one who “gets” your business and won’t change everything overnight.
- You may not have much say in what happens to your team or the culture you’ve built.
- The process can be time-consuming and emotionally taxing.
Is it aligned with your values?
If financial return is your main goal and you’d like to hand things off cleanly, this could be a good fit. Just be sure you vet potential buyers with care—especially if your business is rooted in community values or personal relationships. And remember: if you’re Googling how to sell a small business, don’t just focus on the price tag. Think about the legacy, too.
Passing the Business to a Family Member
What it is: Handing over leadership and ownership to your child, sibling, or another family member.
Why it might work for you:
- Keeps the business in the family—literally.
- You’ve likely already shared your values and vision with your successor.
- There’s built-in trust, and you might be able to stay involved in a mentoring role.
Why it might not:
- Not every family member wants to take over—or is ready to.
- Mixing family and business can bring up all kinds of complicated dynamics.
- You may need a longer transition period to do it right.
Is it aligned with your values?
If legacy, continuity, and family are central to your story, this path can be incredibly meaningful. Just make sure there’s honest communication, clear expectations, and plenty of planning along the way.
Additional Resources: UNH CEO & Family Enterprise Center
Selling to Your Employees
What it is: Transitioning ownership to the folks who already help run the show—your employees. This can happen through models like an Employee Stock Ownership Plan (ESOP) or a worker co-op.
Why it might work for you:
- Your team already understands the heart of the business.
- You’re rewarding the people who helped build it with you.
- It keeps jobs local and can preserve the culture you’ve created.
Why it might not:
- It can take time and outside help to set up (especially with financing and legal structures).
- Your team might need support to step into ownership roles confidently.
- Not every business is immediately ready for this kind of transition—but it is possible with the right planning.
Is it aligned with your values?
If community, shared leadership, and long-term impact are important to you, selling to your employees could be the most values-aligned path. And yes—this can work for small teams, too! In fact, more and more small business owners are exploring this path as an alternative to the traditional playbook for how to sell a small business.
What’s the Right Path for You?
There’s no one-size-fits-all answer here. The “right” transition depends on your goals, your people, and the legacy you want to leave behind. Before you make a decision, ask yourself:
- What matters most to me about how this business lives on?
- Who do I trust to carry it forward?
- What kind of impact do I want it to keep making?
Whether you’re curious about how to sell a small business, pass it to your family, or create a team-owned future, you’re not alone. Check out this short video series and explore this breakdown of different transition types to start shaping a plan that works for you.
Your business is more than your job—in a lot of cases, it’s your legacy. Let’s make sure the next chapter honors that.