A business owner certainly has a lot of responsibilities on their hands – you have to run and oversee your business, but you also have to deal with other matters that may not be in the ‘job description’ at the beginning, such as making sure your employees are happy, dealing with governmental regulations, finding ways to beat your competitors, and so on. And whilst being a business owner has its own rewards, perhaps you are thinking that you might want to delve into another endeavour, or you’d like to retire in the near future.
If this is the case, then you may be thinking of selling your business as well. Selling a business has never been easy, but you can still get a viable deal if you know what to expect and how to prepare for it. There are also some mistakes that you should avoid. Here’s a list of the top errors you should avoid if you are planning to sell your business.
First error: not planning properly, and waiting for the ‘best’ opportunity to sell
Of course, you want to get the best price – but if you wait too long for that ‘perfect’ price – a price that’s unreasonable compared to the present economic situation or to your business’ actual worth – then you could be missing out on a vital opportunity to sell. Granted, selling your business takes time, but you have to know when to grab an opportunity before it’s too late.
Also, you need to prepare your business in the proper way. This means keeping your records updated and creating a detailed and highly-informative history of your business.
Second error: not relying on the right representative
You may think that you can do everything on your own, including marketing your business to the right buyers, but do you really want to spend almost all your time making sure your business is properly listed? Your time should be spent fixing your business and enhancing its attractiveness to buyers. Deciding to sell your business doesn’t mean you can stop running it – on the contrary; buyers like to see a business making clear profits before they even consider purchasing it.
One of the best things you can do is to rely on the right representative who can easily sell a business based on their expertise and experience. This means relying on the right broker or consultant. An expert will be able to advertise and list your business, and they will have access to the proper connections and contacts as well. Aside from this, they may have access to lenders, which can help facilitate a business sale.
Third error: being unreasonable about your price
As already mentioned, you have to be realistic about your price. If your business is priced too high, then you may not get any offers. If your business is priced too low, you could be on the losing end. A broker or assessor can help determine the actual value of your business based on the current market, the price of similar business enterprises, and your business assets. There has to be the right balance in price, so you have a better chance of selling your business but also benefit from the best possible offer.
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