Selling a business isn’t something that even the most experienced business owners do all the time. Most people haven’t the slightest idea of where to begin, and the ones that do, often think that it’s really easy. The truth is that selling a business takes a great deal of knowledge and preparation, in order to yield the very best results. Here are a few things you ought to avoid when attempting to sell your business.
1. Choosing the wrong business broker to represent your business
Selling your business all by yourself is a mistake. Successful business brokers have a great deal of experience getting great deals for business owners just like you, but just make sure you check their credentials. Too often business owners choose to work with the first business brokers they meet, which sometimes costs them wasted time and money, in the long run.
2. Failing to market or promote yourself
Sure, the business broker will get your name out there, and hook you up with some high quality interested buyers, but you know your business best, so in some respects, your more than qualified to find good prospects. With the broker’s vast experience, and your in depth knowledge about your own business, your bound to end up with a great deal sooner or later.
3. Giving your business an unrealistic price tag
You can’t label your business with a very high price, and then expect loads of potential buyers to flock towards the opportunity. You need to set the price within the context of the industry and economy, as well as other businesses similar to your own.
Also, be sure not to price your business too low. Often times, business owners will price their business low because they are tired, and just want to get rid of the business as soon as possible. If you take the advice of experienced business brokers and consultants, though, they will not advice this. The key is to get the most out of what you’ve put into the business.
If you haven’t generated a whole lot of profits though, one thing you can do is to have a “going out of business sale.” A “going out of business sale” sale can provide you with instant cash flow, as well as a very fast turn-over rate. There are so many business owners that have not turned a profit, or that have cash flow problems, never try this easy money maker. Many business owners just aren’t motivated enough or have a loss of energy, because they may not want to admit defeat or failure.
4. Taking the first or second offer
Although you may be extremely anxious to let your business go, selling it to the first or second party who’s interested, may not be your best offer. Selling your business for the maximum amount of money, with little or no money down along with an extended contract, may lead you to lose it all. Interestingly, business sales often go bad after the new owner takes over. This is usually because the new owner doesn’t have proper experience, or because they are closed-minded and not open to advice from others. It’s best to wait a while, take a look at all of your options, and think long-term. When business sales are made with the long term future in mind, it makes tremendous opportunity for both business owners and the success continues.