Many things can go wrong with your business. It’s going to be important for you to take the time to explore everything that’s out there and get the outcome that you deserve. Fortunately, with planning, you’re again giving yourself a better chance by knowing what to expect. Some of the biggest mistakes are even related to poor planning:
Selling at the wrong time. There is always a good time and a bad time to sell in the business world. Fortunately, when you work with professional brokers, the good times usually outweigh the bad. However, you have to be mindful of when you are selling and who’s actually buying, as well as what the market is like, and more. For example, you might not sell during a certain season when things are slow, you might opt to hold off on selling your business because the financials aren’t right, or anything else. Is now really the best time to sell?
Selling for the wrong price. Pricing issues plague business transactions day in and day out. It’s difficult to value a business and no matter how much people feel like they might be able to do it themselves, it isn’t an easy task. Some formulas involve calculating profits and assets to give you a starting point and you can even use online calculators to get an estimate or idea of what your business can sell for before you put it on the market. Pricing can make or break a deal in moments.
Marketing in the wrong places. Do people know that your business is for sale? Are you marketing to the right audience and going where your customers are? These things are critical to your business and going to give you the chance to get the exposure that you deserve in your sale. Take advantage of social media, as well as things like text marketing and other places where you can find an additional audience.
Not hiring the right representation. There are a number of experts out there that can help you in selling your business. If you don’t take advantage of them, you’re not giving yourself the best chances of success. If nothing else, you need to hire a business broker who can represent your business and provide the dedicated resources that you need to garner the profit you deserve. An accountant and lawyer could also be a good addition, though, so don’t limit your options until you see what’s out there.
Staying around too long after the close. You might find yourself in the middle of a deal where the new buyer wants you to stay on after the sale has been completed. They may want advice and insight, or they may need your help in other ways. Regardless, you should make sure that you don’t do this for any longer than necessary. If they want consulting or other services, keep it short and sweet so that you can detach and move on.
Several issues could arise with a business sale. However, you’ll want to do everything that you can to keep your professional image and get the best transaction possible. If you are prepared and have the best practices in place at all times, it will be easy to get a quicker sale and a better price for your business.
Keep these mistakes and pitfalls in mind and use them to help you identify others along the way. Then, your business deals will be much less stressful.