Just as any other asset, the process of selling your business should be done carefully as it is key to increasing your net worth. It is sad that small business owners lose thousands of dollars after selling their businesses without a proper plan. Worry not! All is not lost, as Rockrose Realty Inc. provides Miami residents and those beyond with the necessary advice to avoid making the same mistakes when selling their businesses. Professional and qualified business brokers come in handy in the process of selling a business by guiding you with the right procedure, saving you some money in the process.
Common Mistakes You Should Avoid When Selling a Business
- Failing to Prepare or Procrastinating the Sale for Too Long
As the saying goes, “Failing to plan is planning to fail”. Without a proper plan for your business’s future, you are bound to make mistakes when the time comes for selling the business. On the other side, waiting too long to may cost you the opportunity of selling your business. Plans for business succession is also vital to the success of the business sale. When your potential buyer notices your seriousness with such plans, the value of your business increases significantly.
- Failing to Seek the Right Kind of Help
A business sale is not such an easy process. A common mistake that business sellers make is undertaking most or the entire process all by themselves. The consequences of this can be extremely detrimental. A buyer can easily tell if a lawyer represents the seller or not. Whenever they notice that you are not represented by a person who is qualified in that field, the can massively take advantage of the situation, costing you a lot of money in the business sale.
- Setting Unreasonable Prices or Asking Too Little
Asking for ridiculously huge amounts for your business may easily fend off potential buyers. This is especially the case when you expect to get too much money for a business that generates little profit. To avoid this mistake, compare your business to others in the same industry. For a business that generates a sizeable profit, business owners should not shy from setting high but reasonable selling prices, which should come after proper research.
- Over Negotiating When Selling the Business
Deals often fall out whenever the negotiation period is overstretched. Pushing the deal through in good time is essential. This way, both parties feel the taste of the deal they have struck. This is the part where the expertise of business brokers comes in handy, as they facilitate a smooth negotiation process until your business is sold.
- Selling to the Wrong Person
The first offer is not always the best offer. Business sales often go bad right after new owners take over. Lack of business experience, being a weak leader and having a closed mind are among the main reasons. Business brokers are experienced in this field and can help you identify the right buyers of your business.
Whenever you are selling a business, it is important to evaluate your options so that you make the right decisions for the long term. Call us or visit our office in Miami for a one-on-one chat on how you should approach the business sale.