There is no best way to sell a business in general, and the question becomes answerable the moment you settle one thing: do you already know who would buy this? Owners who do and owners who do not are running two different processes with different costs, different timetables and different risks, and most of the generic advice on this subject is written for the second group while a large share of small business sales are actually the first.
If you know the buyer, the problem is negotiation and process
A competitor, a manager, a supplier or a family member. You do not need marketing and you may not need a broker to find anybody, so the fee question becomes whether you are paying somebody to run a process you could run. The real risk is a single buyer with no competition, and the mitigation is preparation and a credible alternative rather than a bigger adviser.
If you do not, the problem is reach and screening
Finding buyers is genuinely hard, and separating serious ones from tyre-kickers while protecting confidentiality is harder. That is what a broker sells, and it is worth a commission if they have the buyers. The question to ask any broker is not what their rate is but who specifically they would approach, because that is the thing you are buying.
What is the same either way
Preparation. Both routes end with a buyer running diligence over the same pack of documents, and the readiness of that pack is the biggest single thing under your control in either case. It is also the only part of the answer that is not contingent on which route you pick, which is why it is worth starting before you decide.
Questions people ask about best way to sell a business
Is selling to a competitor a bad idea?
It is common and it carries a specific risk: sharing information with somebody who benefits from it if the deal fails. Owners manage that by staging what is disclosed, and the confidentiality agreement is your own solicitor's to advise on.
How do I judge a broker before signing?
Ask who they would approach and what has sold in your sector recently. Then work their contract into figures, because the headline rate and what you actually pay are frequently different numbers.
Is an auction or structured process worth it?
It is what advisers run at larger sizes and it depends on there being several credible buyers. With one buyer it is theatre, and experienced buyers recognise it.