Can you sell your interior design business? The short answer is a resounding yes, and if you do it right, you can walk away with life-changing money. But it takes time and careful planning. Here are the 10 things—and five people—you’ll require for a successful sale.

WHAT YOU NEED
1. A strong, cohesive brand that is not dependent on you
If your name is on the business, it can imply that you will always be actively involved in a client’s project. Consider renaming the firm years prior to your exit.

2. A team-based client experience
Clients understand and expect that a design team, not just the founder, will create and manage their project.

3. A clear, documented succession or transition plan
We recommend planning three to five years in advance of your exit to ensure the right people are in the right roles and that all elements of the business operate smoothly.

4. Minimal founder dependence in day-to-day operations
This is especially important in business development and design. If revenue and creative direction rely heavily on you, the business value is reduced.

5. A strong leadership team overseeing key departments
That includes design, operations, sales and marketing, finance, human resources, and administration. Ideally, each key function has clear ownership. The founder should not occupy multiple major roles.

6. Operational independence
You should be able to step away for at least 30 days while the business continues to operate and grow successfully.

7. Documented and followed policies, processes and procedures
This includes systems for the client journey, onboarding, accounts payable, accounts receivable, hiring and other core activities.

8. Consistently healthy profit margins
A net profit of 15 percent or higher for three or more consecutive years demonstrates financial discipline and operational strength.

9. Positive, consistent, and growing cash flow
Cash flow should be monitored monthly and managed proactively.

10. A personal post-exit plan
You need clarity about what life will look like after the sale. How will you spend your time? How will you steward the proceeds from the transaction?

WHO YOU NEED
Those are the key items that will make your firm a sellable business. But you also need people to handle the actual sale. To help shepherd the process along, it’s critical to assemble advisors well before beginning the transition process. Your team should include:

1. Accountant
Speak with your CPA about their experience with sale transactions. You may need to findone with specific exit transaction experience if your current advisor does not
have it.

2. Financial Advisor
This advisor can help you understand how to structure the sale, whether asset or
stock, and plan for managing your wealth after the transaction.

3. Valuation Expert
Look for someone with experience valuing professional service firms, ideally within the design industry.

4. Mergers and Acquisitions Advisor or Investment Banker
These professionals assist with preparing the business for market, identifying buyers and negotiating deal terms.

5. Transaction Attorney
You need an attorney experienced in sale transactions. This expertise may go beyond what your general business attorney provides.

We have several clients who have gone through, or are currently navigating, the exit or
succession planning process. The common thread among successful outcomes is early
preparation.

As a founder, you must ensure that you and your financial team are prepared for ongoing negotiations, shifting dynamics, and unexpected challenges throughout the process. There will be peaks and valleys. Do not celebrate the numbers until the funds are in the bank. Exiting your business can be complex and demanding. However, when structured thoughtfully and executed well, it can result in a significant financial reward and a powerful next chapter for you and your legacy.

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Gail Doby is co-founder of Pearl Collective (formerly Gail Doby Coaching & Consulting), an interior design business consultancy that helps designers, architects and other creatives increase their profitability. Doby ran her own design firm in Denver for nearly 20 years and has a degree in finance and banking. Since 2008, she has been helping designers scale their businesses profitably and reach financial freedom. As a coach, mentor and business transformation specialist, she shares innovative ways to overcome the roadblocks, challenges and detours creative entrepreneurs face. She is also the bestselling author of Business Breakthrough: Your Creative Value Blueprint to Get Paid What You’re Worth. Her goal is to empower design industry clients to differentiate themselves, drive measurable results, achieve business projections, and create personal satisfaction through game-changing strategies and business practices.