If you’ve finally decided to “Sell Your Business,” keep in mind that “Selling Your Business” is never easy, especially in this struggling economy and unprecedented financial conditions due to the Coronavirus. It can be tough to get a fair price, which can be frustrating for small business owners. And, as a result, the process of trying to sell your business can become an excruciating one.
Apart from that, every day, small business owners make costly mistakes when selling their business and lose thousands of dollars in the process. Their long-term investment, along with all their hard work, goes down the drain.
These mistakes are often easily avoidable. And you can reduce much frustration if you recognize some common mistakes you should avoid when selling your business.
5 common mistakes that you need to avoid at any cost when selling your business:
Some business owners have some reluctance about initiating the sales process. It’s not easy to walk away after building a successful business or taking an existing business to greater heights.
However, when selling your business, reason, and rationality should prevail over sentiment. If a great selling opportunity develops and you still decide to wait, you may eventually regret this decision. Competition may enter the market, or your service or product may decline in value due to larger economic conditions.
When thinking about a sale, it’s important to consider any changes occurring within your industry and the economy in general, along with how those changes could affect your sale prospects.
Not Planning Ahead
Most small business owners are surprised by the amount of time a typical sales process takes. On average, it takes 1-2 years to sell a small business. If you fail to plan ahead, your window of opportunity can close before you have time to conclude a sale.
Small business owners should prepare well in advance by keeping updated records. Such as detailed history of the business, and a sales portfolio prepared and ready to go. When a prospective buyer enters the picture, you’ll have all the necessary documents to begin engaging that purchaser.
Not Marketing Your Business Effectively
As entrepreneurs, you might have dreamed of owning your own business and building it successfully to reap the rewards in the form of a successful business sale. Sounds fantastic, but selling your business is not as easy as it appears.
Don’t fret – Julie Brigman is here, and hiring her is perhaps the most consequential decision business owners can make during the sales process. She’ll help you value your business correctly and ensure a timely sale at an attractive selling price.
Being an excellent business broker, she’ll also promote your company effectively, generating high-quality leads in the process. On the other hand, other brokers might wrong you by mispricing your company, costing you money, or extending the sales process by months or years.
It’s also important to remember that a broker knows a business better than its owner. Meaning that a business owner is often his/her own best promoter and advocate. Small business owners should remember this & use it to their advantage by working closely with Julie Brigman to promote their company in the best way possible to generate leads.
Failing to Value Your Business Correctly
Setting an appropriate value is often tricky for business owners, as they aren’t sure about “How much their business is worth selling for?” Some small business owners might settle on a price before doing the research required. Unfortunately, it’ll lead them to sell for a far too low price. For other business owners, “Sell My Business fast” is always on top of their mind, which leads them to sell too quickly, and ultimately makes them settle for less.
A qualified business broker like Julie Brigman is in the best position to value a business correctly. So, it’s advisable to work with professionals like her to maximize your profits while still encouraging a timely sale. She’ll help business owners arrive at an informed valuation.
Professionals like her have the necessary experience and familiarity with local market dynamics to identify valuation “sweet spots,” which may include the type of business, customer base, potential buyers, cash flow, and financial statements, among others.
Further, as part of your exit strategy, you always need to price your business right. The sale price should be attractive enough to enable a timely sale yet high enough to avoid leaving money on the table.
Selling Your Business to the Wrong Company or Person
A successful business sale requires more than a good business valuation or the right sales partner – you also need to consider finding the right buyer. On top of that, drawing prospects into the qualification process has many benefits.
Plus, early pre-qualification can help ensure that sensitive information about your business remains private (through the signing of NDAs (Non-Disclosure Agreements) and allows owners to dismiss candidates who aren’t financially qualified to move forward.
Regarding finance, business owners are likely to encounter a variety of purchase proposals. Some may be cash-only, others may ask for seller financing. Few may be fully bank financed, which is a major consideration for sellers. If business owners are asked to provide full or partial financing – or asked to stay on post-sale to help manage the transition – it’s imperative to vet the buyer fully.
Searching for “How to Sell My Business in Jacksonville” – Contact Julie Brigman at Transworld Business Advisors
When you’re finally out there in the market to “Sell My Business,” get one-on-one consultations with Julie Brigman – a name that’s synonymous with “Sell My Business Jacksonville.” Discuss the issues surrounding the sale of your business with Julie Brigman, an expert in this domain. Julie will also ensure you receive the best possible ROI (Return on Investment) so contact us now.