Abe Lincoln once said:
“Give me six hours to chop down a tree, and I will spend the first four sharpening the axe.”
Lincoln’s wisdom applies directly to business owners who may be thinking about selling. The temptation is to keep swinging—to run the company day to day—and then, when retirement or burnout arrives, to suddenly decide: It’s time to sell.
But here’s the reality: if your “axe” isn’t sharpened, you’ll work twice as hard and get half the result.
What does a dull axe look like for potential buyers of your business?
- Financials that aren’t clean or up-to-date.
- A business model that depends heavily on the owner.
- No clear growth story to show buyers.
- An inflated idea of what the business is worth.
These are the kinds of things that turn potential buyers away—or worse, drive down the price.
What sharpening the axe looks like before a sale
- Know your true value today.
Owners often guess their business is worth more than the market will pay. Understanding the realistic value in today’s environment allows you to make informed decisions.
- Prepare your financials.
Buyers and lenders want clear, organized financials. If your books aren’t ready, you’ll lose credibility and leverage.
- Strengthen your team and systems.
If the business can’t run without you, buyers will discount heavily—or walk away. A sharpened business is transferable.
- Time the market.
The market shifts constantly. Right now, buyers are active, private equity has capital, and strategic acquirers are looking for growth. But interest rates, lending conditions, and industry trends can change quickly.
Why this matters right now
If you’re planning to exit soon, or if you’d even consider selling if the right buyer appeared tomorrow, the time to sharpen your axe isn’t “someday.” It’s now.
The worst time to prepare is when you’re already standing at the closing table. By then, you’ve lost the leverage that preparation provides.
A better path forward
Think of sharpening the axe as creating options:
- If you sell, you’ll maximize your price and terms.
- If you keep the business, you’ll enjoy stronger profits, less stress, and a more scalable operation.
- If an unexpected buyer approaches, you’ll be ready.
Preparation isn’t wasted—it’s an investment in both your freedom and your future.
Final thought
Lincoln’s advice was simple but powerful: preparation makes the work easier and the outcome better.
Don’t wait until you’re ready to chop. Start sharpening your axe today.
I help entrepreneurs buy and sell remarkable businesses as well as help them plan their exits. If you would like to learn more about how much your company is worth and/or how to maximize the value of your business at exit, Click Here to schedule an introductory call with me or feel free to email me dave.godwin@cbiteam.com. I will help you discover how to find out if it’s the right time to exit and help you ask a higher selling price for your business. All information is managed in the strictest of confidentiality.
