The biggest mistake that business sellers make is not doing enough work. The same amount of effort that they spent in building up the business should be spent in selling it in its final years. Continue to increase the value of your company and work closely with a team of professionals to help you make the sale. Review the
seven most common mistakes that sellers make in completing this task.
Assuming the Value and Setting a Price Too Quickly Assuming a monetary value for your business will cause you lose money, not gain it. Always know the exact value that your business is worth. Hire an accountant to review all of your assets and liabilities since this is the only valid method of determining its worth.
Not Planning Ahead It takes a year or longer to prepare to sell your business. Trying to do everything at the last minute causes people to make a lot of mistakes in a short period of time. You need enough time to do research on selling a business, determine the value of your assets, settle debts, seek buyers and many other tasks.
Not Doing Enough Research
Then, there is the problem of not knowing enough information to complete a sale properly. A common excuse is that you didn't have enough time or were too busy. But research prevents you from making preventable mistakes. One common mistake is to sell the business at a price lower than its value. Another is not submitting all of the paperwork that's necessary to complete a sale legally.
Not Building Up the Value Give yourself enough time to increase the value of your business. Work on boosting your profits in various ways, such as raising or lowering product prices, reducing expenses or buying cheaper inventory. Consider enhancing your brand and making your company stand out from competitors. Maximizing the company's value allows you to sell it at a higher price.
Not Finding the Right Buyers Find buyers who are serious about making a deal, and avoid the ones who are uncertain or uninformed. A serious buyer only makes reasonable offers and negotiations. They are proactive and will communicate within days of receiving an email or phone call from you.
Not Being Able to Negotiate Not being able to use your negotiations skills effectively means losing money. A buyer could easily buy your company for less than its actual value. If sales negotiation is not a good skill, hire a salesperson, business consultant or accountant to provide assistance.
Not Working With the Experts Another problem is trying to do all of the work without acquiring the help of experienced professionals. A lawyer has years of experience and knowledge in dealing with legal matters. Selling a business means having to follow business laws and read over legal documents. A lawyer is more qualified to understand legal terms. When it's finally time to
sell your business, you may look in all the wrong places to find buyers. A broker handles every step of the sale faster than if you did it yourself.
Take example from the millions of people who've made mistakes in selling their businesses. Remember that the process does not occur overnight as it could take years of preparation to make a sale. Work on using the most effective methods to get the best value from your business.