22 Sep Common Mistakes Business Owners Make When Selling
An owner who is looking to sell their business on their own is doomed to fail from the outset. The myriad of factors at play are so immense that an owner who is still managing the day-to-day operations of their business will have no time to consider any potential mistake that he or she will make when attempting to bring their business to market. The purpose of this entry will be to help owners looking to sell identify common mistakes and help them to avoid making the same errors.
One common mistake is that owners will bring their business to market with an inaccurate price. An owner must do his or her due diligence to sit down, analyze and identifying all of the company’s assets, liabilities, and projected profitability. Without considering these factors, you will not correctly valuate the true worth of your business, and any buyer will balk at any business that is obviously overpriced, or they will take advantage of a deal where they know the owner has undervalued the total worth of their company.
Another mistake made by owners is failing to find the correct type of potential buyer. Different kinds of businesses appeal to different kinds of people. Not everyone in the market for a business will want to consider yours if it is in an industry that is unrelated to their experience or one that is not of interest to the buyer. You need to identify your market and find the right buyer within those parameters.
Finally, the most common mistake that owners make is the assumption that they will sell their business quickly. While this may dismay many owners that read this post, but unfortunately, selling your business is not an avenue for overnight success. Given the previous two mistakes that we have covered, it is obvious from the outset that selling a business takes time. An owner needs to prepare properly by accurately valuing their business and finding the right market for its eventual sale. Patience, like in all aspects of life, is also key in the market for companies.
Obviously, in order to avoid these mistakes, it is best to get a professional business broker with years of experience that can help you prepare and stay patient for the right buyer. Contact Moshe Hazout at Transworld Business Advisors today!