Did you know about 67 percent of entrepreneurs started their businesses at home?
If you consider yourself a self-made entrepreneur and you have been working on a business for some time, you might feel is time to move on to the next project.
However, if you are thinking about selling a business, there are a few mistakes you need to avoid. Read on to find out what they are for business sellers.
1. Waiting Too Long to Sell
One mistake to avoid when trying to sell your business is waiting too long to sell. If you wait too long to sell, you could miss the perfect window of opportunity and miss out on a great seller.
For starters, most businesses take up to two to four years to get sold. Awareness of the timeline and adequate preparation are necessary to take advantage of the momentum it will generate.
As soon as you start considering selling your business, it is important you begin with the preparations. Because you never know when the perfect seller will walk in, you don't want to wait too long to have everything ready.
2. Not Finding the Person that Aligns With Your Values
As a business owner, your company is a reflection of your values and hard work. Therefore, one of the biggest mistakes you can make when trying to sell your business is selling to the wrong person.
Although it might be tempting to sell to the first person who makes an offer, they might not be the best people to preserve the integrity of your business.
3. Not Pricing Your Business Right
When you're in the process of selling your business, you need to make sure you price it right. Some business owners think their business is worth more than it actually is even though the business doesn't have high profits.
Before you set your mind on the price of your business, you should do your research. Make sure you look at the numbers of similar businesses in the same industry.
While some owners price too high, others price too low. It might take some work, but you will come up with the right price.
4. Failure to Promote Yourself
Part of the process of selling a business involves promoting and marketing it. Some business owners think they can just sit back and let the broker do all of the work.
While the broker does do a lot of the marketing, you're the person who knows your business. It's important you take action to promote the sale of your business.
5. Not Finding the Right People
One of the biggest mistakes a business owner can make is not working with the right broker. If you don't work with the right broker, it could delay the sale of your business.
You should also work with the right trust lawyer the moment you decide to sell your business.
Selling a Business: The Bottom Line
Now that you know the top things to avoid when selling a business, it's time you move on to the next step.
Make sure you find the right people to work with you, promote yourself, and price your business right for a sale.
