5 Aspects To Avoid When Selling Your Business

Waiting too long, or not planning in advance, can cause many business owners to miss their window of opportunity. It takes an average of six months to two years to sell a business. By keeping updated records, a detailed business history and sales portfolio on hand at all times, it will make your planning pay off. You just never know when that perfect buyer may walk into your business and make you an offer you just can’t refuse.

Finding the right broker and/or consultant to help you sell your business is crucial to your success. Often business owners go with the first person they meet just to list their business and get the process going. This can cost you time and money in the long run. Within a few months, you may see no results and have to go on the search all over again. Signing up with the right broker is essential.

Most interested buyers will want to see lots of data about your business. These documents can take months to prepare and put together if you are doing it by yourself, all while still trying to run your business. IAG’s team members not only do it for you, but we present your business’ data in ways that buyers today want to see, allowing them to make sense of your business faster and get to negotiations. Trying to do this all by yourself can cost you a lot of time and resources. Many times, you only get one shot to properly present your business for sale.

Thinking a broker will do all the work in promoting your sale can be deadly. You are the best promoter for your business. Who knows your business better than you? No one is more motivated, passionate and knowledgeable about your business than you. A broker may be getting you some activity, but it’s important that you continue to promote yourself as well.

IAG is a business intermediary firm, as well as a business for sale marketing agency. Allowing us to do our work, while you also continue to promote, can boost the liklihood that your business gets acquired by the right buyer, at the right time.

Setting a very high or unrealistic price tag on a business can lead to a dead-end street. Expecting to get top dollar for a business that generates little or no profit is simply using bad business sense. Consider your industry, similar businesses, the economy and your marketplace when pricing your business to sell.

On the other hand, a business that does not generate profits may do well with a going-out-of-business sale. This type of sale can generate instant cash flow and quick turnover. Too many business owners that have not turned a profit, or have cash flow problems, miss this wonderful opportunity. Some reasons they miss out is due to lost energy and/or motivation or because they may not want to admit defeat or failure. Remember it is business—don’t worry about taking it personally. Look for the most valuable opportunities for your business.

Another mistake is to price the business too low. Often business owners will price their business low because they are burned out, suffer from an illness or did not get good advice. Do your homework first. Listen to brokers and consultants. Do research about other business sales before jumping in with both feet.

Taking the first offer may not be a wise choice. This may not necessarily be your BEST offer. Selling your business for top dollar with little or no money down along with an extended contract may lead you to lose it all.

Business sales often go bad after the new owner takes over. The new owner may lack business experience, have a closed mind or be a poor leader. The list goes on and on. A successful business owner makes it looks easy, but change that mix and disaster may strike. When this happens, the new owner ends up going out of business and leaves the previous owner holding an empty bag. It saddens me to see a business fail after years of success due to this lack of business sale judgement.

Evaluate your options and make the best selection for the long term. Ask yourself, is this the best person to buy and run my business? Or, can they quickly connect with my customer base and learn how to market effectively? When the business sale goes as planned, it creates a tremendous opportunity for both business owners and the success continues.