Small owners are constantly make a few drastic errors when it comes to selling their business, thus losing out on a lot of money in the process.
Every entrepreneur has put in a lot of effort in building their business from scratch most often, and want to reap the monetary benefits when it comes to selling their business.
But the truth is that selling your business is a bit more challenging than it sounds.
Here are couple of mistakes every entrepreneur should avoid making when it comes to selling their business.
Waiting Too Long to Sell or Not Planning Ahead
Many business owners tend to miss out on salient and marvelous opportunities simply because they haven’t planned in advance or have waited much too long.
Small business ideally should be sold within two to four years.
Long term planning therefore, is make or break for the sale of small businesses.
Your planning will pay off when you start to keep a detailed business history, updated records, and sales portfolios at all times.
This will help in selling your business efficiently even at the least notice from a prospective buyer.
Not Being able to find the Right Person to Represent Your Business
It is critical to find the right consultant or broker to help in selling your business.
There are many business owners that don’t put in sufficient research when it comes to choosing a consultant, and often opt for the first person that comes along.
Choosing incorrectly will cost you time and money. If you choose the wrong representation, you will see no results and will have to start from scratch all over again.
After all, selling your business is serious. Set aside ample of time to interview brokers to get a feel of how much value they can bring to the table.
Assuming that You Don’t have to Market or Promote Yourself
Just because you have signed with a broker or a consultant, that doesn’t mean that you have to sit back and relax.
Even business owners need to get out there and start promoting their business because no one knows your business like you do.
You are the most motivated, knowledgeable, and passionate person and selling your business is your first priority.
A broker will help in connecting you with prospective buyers, but you should continue to market yourself as well.
No one can do that better than you can.
Quoting Too High or Too Low
When it comes to selling your business, it is important to know the market value and quote the right price.
If your business gets little or no profit, you can’t really expect to get paid the moon and the stars for it. You need to be realistic about your business’ worth.
When pricing your business to sell, consider similar businesses, the industry within which you operate, your marketplace as well as the current economy.
Listen to your consultants, friends & family, and brokers who will provide you with excellent advice and do some homework yourself before selling your business.