As an entrepreneur, building a business empire is your original dream. You launch a venture which you dream of making a winning brand that delivers topnotch customer services. As such, you invest your energy, ideas, and capital to fulfil this ambition. But, due to one reason or another, you decide to dish it out at one point.
While this is a good idea, making mistakes when offering your business for sale can cost you big time. A slight mistake can drain your years of hard work and commitment. Though errors are unavoidable, repeating the mistakes of your predecessors is a show of ignorance. Here are three fatal errors that you should avoid when selling your business:
Being unrealistic when setting the asking price
Well, it is true that you want to reap good returns of your hard work from the business sale. However, you can only reap according to what you sow. You can’t expect the buyers to pay the top dollar while your business is earning limited or zero profits. Also, you cannot price your small business at the same value of an established venture. Being realistic is one of the easiest ways to sell your business. As such, avoid unrealistic pricing. Always set your prices based on the business value. Demanding more for less will only lead to losses.
Finding the wrong broker
Using a broker as the person to sell your business is a good idea. But not all brokers in the business for sale market are worth it. When searching for a broker, take time to do due diligence research to know more about them. Obtain information on their experience in the market and previous sales they have facilitated.
Also, ensure you can contact those individuals to get a share of their experiences. Otherwise, picking a broker due to their ability to convince you and a sweet-mouth can lead to regrets in later days. With a wrong broker, your business can take ages to sell. So, be wise when considering one.
Selling your business to the wrong buyer
Even when you dish out your business, you have a desire to see it flourish. You do not want the business to fail a few months after a takeover. For this dream to come to fullness, you must be conscious when selecting a buyer. Not every person posing as a potential buyer has the knowledge and experience needed to run the venture. So, always evaluate the capability of all buyers and pick the best.