The valuation and sale process for small privately owned companies can be a challenging and tedious task for even the most experienced individuals. Due to the size, variability, lack of public statements and stock value, as well as a number of other differences, such companies can be more difficult to value than publicly traded companies. Although each small business may choose to handle this intricate procedure differently to fit their own unique business models and personal needs, I have created a guide to help prospective buyers and sellers through this process. The Guide to Creating a Sale of Business Agreement for a Small Privately Owned Company was created by combining research about the process from a financial and contractual perspective, with real world experience working with a small business owner as a hypothetical prospective buyer. I address the important processes and initial calculations any buyer or seller should go through, and provide a notated template for an example Sale of Business Agreement. This guide could potentially save small businesses thousands of dollars by alleviating the cost of hiring professionals to value their business and mediate the entire sales agreement creation.