To sell or not to sell? That is the question on the minds of business owners who didn’t sell their businesses in 2012 and are concerned about the possible impacts of rising taxes and other economic issues this year. Middle-market mergers and acquisitions activity seems to be picking up in 2013.

Fact is, if you’ve been thinking of selling, the time to begin the process was, frankly, “Yesterday.” Starting the process does not necessarily mean that you will pull the trigger and sell.

If your business is likely to be affected by any of the following factors, then it would be a wise move now to consult your trusted advisors, weigh your options, and begin taking the necessary steps to protect the best interests of your business. Timing is key to ensuring you maximize the value for your business.

Higher taxes and rising prices. Some economists are saying that the recent expiration of payroll tax cuts and spikes in food prices could subtract 0.8 percentage points from U.S. economic growth this year. According to a Reuters poll, the economy is expected to expand 2 percent this year, down from 2.1 percent last year. In light of this, households are more cautious about spending and acquiring new debt, are worried about having enough retirement savings, and are concerned about the rising prices of gasoline and almost everything else.

Choppy market conditions. While the stock market may be up at new highs, it generally does not move in a straight line and we can’t sit back and assume it’s going to continue heading north. The rebound that we’re seeing in the stock market is due in great measure to political factors, including the size of the deficit and Federal policy, making the 2013 market potentially quite a risky place.

Sales taxes for online retailers. Online retailers and other online businesses are likely to get hit with more sales taxes. In time, everyone will have to pay sales taxes for their online purchases, which will neutralize to a certain extent the competitive advantage that many online retailers currently enjoy and will seriously hurt some of margins.

Capital investments and new technologies. The continuous introduction of new technologies that we’re seeing is great in many ways, but purchasing these new technologies can often be quite expensive and require additional investments in terms of training and/or hiring employees who are able to use them.

Rising interest rates. Interest rates are expected to increase at some point and will hurt margins for some business owners.

Industry consolidations. Many industries, such as technology, travel and manufacturing, are experiencing consolidations. It’s critical for business owners to know when to take advantage of good offers to sell their businesses. I’ve seen some business owners who, after missing out on opportunities to sell, have gotten stuck holding the bag with their floundering businesses while their better-capitalized competitors have continued to grow.

Expansions. For some business owners, expansion is critically important to remain competitive and keep up with growing demands from clients, etc. However, this requires both capital and stomach – which not all business owners may possess in the right quantities.

Emotional considerations. Just as important as the practical considerations mentioned above are the emotional factors. Some business owners find that they’ve been through so many trials and tribulations during the past four years that, simply put, they’re tired. They want out. When these feelings hit, it’s usually wise to begin looking for ways to move on, as businesses require a great deal of energy and commitment to succeed.

In addition to selling 100 percent of your business to a strategic buyer, there are a myriad of other options that you can consider, such as selling your business to a private equity firm or family office. This would enable you to retain some of the upside and give you capital to grow your business while helping eliminate some of your risk by taking some of your money off the table.

Indeed, in today’s uncertain marketplace, business owners have many considerations and options to weigh, and it’s important to work with trusted advisors such as investment bankers and attorneys to find the solutions that are best for every situation. As always, it’s all about strategic planning – something that unfortunately some business owners are great at doing for their clients and customers but not so good at doing for themselves. Without doubt, business owners who roll up their sleeves and take the right steps at this time are likely to put themselves in the strongest position going forward into 2013.

James S. Cassel is co-founder and chairman of Cassel Salpeter & Co., LLC, an investment-banking firm with headquarters in Miami that works with middle-market companies. www.cassel salpeter.com

For an example of how not to run a business, look no further than our U.S. Congress. Simply put, you don’t want to run your company like Congress runs the country.

It’s common sense and should be as simple as this: A company should have a board of directors acting for the benefit of the shareholders, like Congress is supposed to do things for the benefit of the citizens. And if your company’s board of directors acts to the detriment of your shareholders, then the shareholders should fire the board the same way we should fire Congress and replace the entire lot with people who will take their fiduciary obligations seriously and make the tough decisions.

Here are a few of the many learnings we can glean from the mistakes of our Congress:

Make decisions. When running a business, it is critical to make decisions rather than keep kicking the can down the road the way Congress is dealing with the reduction of expenditures. Rather than trying to blame others, you must take ownership and take action to remedy the situation. It’s never easy. Avoiding or ignoring problems doesn’t make them go away. It makes them get bigger. If you are bumping up against your credit limits and have cash-flow problems the same way the government bumps against the debt limits, you should work with your creditors to develop a plan rather than waiting until the last minute to scramble for solutions or face dire consequences like bankruptcy. Unlike the government, you cannot print money, but you may be able to sell equity and raise cash.

•  Be efficient. Much like our government needs to become more efficient, your company should continuously look for ways to increase efficiencies. Evaluate every expenditure and eliminate things you don’t need. Allocate the most resources to things that bring the most value to your firm. Invest in consultants who can help you save money, grow your business or streamline operations.

•  Don’t sugarcoat. We’ve all seen our government trying to change the definitions of things in order to make them look prettier. Don’t change your accounting methods to make problems look better or try to hide things. It is important to be clear. When there are challenges, make sure the appropriate people know so they can help find solutions. When we acknowledge the issues and problems and are willing to work together with all constituencies, we can generally come up with a solution that is acceptable by all those involved.

Take advice. Smart business owners recognize the value of smart advice. Take advantage of outside advisors to help you. However, success requires a collaborative effort in which you work with your advisors and consultants, and then take and implement their advice. I once worked with a business that hired a great advisor, but when the report was complete, it was shoved into a drawer. Reminds me of the way Congress and the president ignored the Bowles-Simpson deficit-reduction plan.(Maybe they will dust off Bowles-Simpson as a framework and surprise us all.)

•  Focus on what you can control. Effective business owners know how to prioritize and focus on what really matters. They know to deal with things that are within their reach. Understand what you can’t control, and deal with what you can control.

•  Keep a close pulse on the healthcare climate. Stay abreast of the healthcare laws this year and develop a plan for how you will handle the changes when the new healthcare law fully goes into effect next year. While it’s always better for employees to stay insured, you may have to tweak terms of your coverage to make the plan financially viable for your business. Not every business can afford Cadillac plans. Moreover, make sure you understand the law better than Congress does. I have read that very few, if any, of them read the entire bill before they voted. Before you sign any document, you should read it entirely and make sure you understand it.

•  Tackle problems head-on. If your business is losing money, don’t just keep pumping in outside money. You need to take a step back and deal with the problem by figuring out what’s causing the problem and then take the right measures to put your business back on track. For example, when it comes to employees, you need to know when to fire bad workers. Keeping these employees just means more work for everyone else, increased liability because they could make serious mistakes, and an unfair environment for other employees who have to cover for them.

•  Plan. Many middle-market business owners mistakenly assume that business plans with budgets are for bigger businesses, and they are too “small” to need business plans, succession plans, etc. They say they’re too busy with day-to-day work and don’t have time to stop and think ahead. By taking a reactionary approach and not planning for the future, they reduce the likelihood of getting what they want from their businesses. Do not be like Congress, which keeps dealing with matters piecemeal rather than adapting a budget.

•  Get help. Thankfully, there is no shortage of places where you can get help. In addition to contacting colleagues, consultants and advisors, you can get personal coaches or peer advising from companies like Vistage. Just because you’ve successfully owned a business and have done things a certain way for 20 years doesn’t mean you should keep doing things the same way today.

There’s no question that running a business is not easy. Indeed, it can feel like running a country. By taking the right steps and getting good advice along the way, business owners can minimize the challenges and increase their chance for success.

James Cassel is co-founder and chairman of Cassel Salpeter & Co., LLC, an investment-banking firm with headquarters in Miami that works with middle-market companies.www.casselsalpeter.com