Mistakes to avoid when selling your business

Every business owners must consider the ramifications of one day selling their business. This is because selling your business can be the crowning achievements for an entrepreneur if it is done successfully, or it can be the moment that you see all your hard work go down the drain. There are several mistakes that if you avoid them can make selling your business much more successful. Here are some mistakes to avoid when selling your business-

• Not finding the right person to represent your business-Once you have decided to sell you must find the right person to represent your business. The bottom line is that finding the right broker and/or consultant to help you sell your business is crucial to your success. Many times business owners go with the first person they meet, in order to list their business, and get the process going. You need to keep in mind that this can cost you time and money in the long run. If this doesn't work, you may see no results, and have to go on the search all over again. You need to take time to interview many brokers. You also need to be looking at a realistic outcome of what is expected will get you started in the right direction. Make sure that you sign with a broker who has a realistic view of the market, and get the buyers into see your business.
• Selling at the wrong time-If you wait to long or do not plan your sale in advance, it can cause you to miss your window of opportunity. Waiting too long, or not planning in advance, can cause many business owners to miss their window of opportunity. It is important to keep in mind that it takes an average of two to four years to sell a small business. Because of this, long-term planning is the key to any successful business sale. To help with your planning be sure to keep updated records, a detailed business history and sales portfolio on hand at all times, since this will make your planning pay off. The bottom line is that you just never know when that perfect buyer may walk into your business, and make you an offer you just can't refuse.
• Asking too much or too little for the business-You need to understand that setting a very high or unrealistic price tag on a business can lead to a dead end street. Also, expecting to get top dollar for a business that generates little or no profit is simply using bad business sense. You will need to consider your industry, similar businesses, the economy and your marketplace when pricing your business to sell. There are other options to consider as well. For example: 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 turn over. Too many business owners that have not turned a profit, or have cash flow problems, miss this wonderful opportunity. There are different reasons they miss out on this options. Sometimes this is due to lost energy and/or motivation, or because they may not want to admit defeat or failure. It can be hard not to take it personally, but you should 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. It is crucial to do sufficient research and homework, listen to brokers and consultants, understand what you market will bear. You should also do research about other business sales before putting your business on the market.