Selling a business most times isn’t an agenda by owners of these businesses during the birthing stage of their business. Though, a minor fraction purposely had intentions of selling their business with the sole aim of making profits. The former might have dreamt of seeing themselves being successful in their business, doing very well in it, reaping the dividends thereof through making sales that will generate profits. Sadly, sales may not be coming forth as planned as it becomes hard to make ends meet. The challenge to keep pushing begins to drain off allowing frustration to surreptitiously creep in and subjecting one into considering selling their business. Below is a rundown of possible mistakes overlooked by these companies or entrepreneurs leading to their sale of the business.
Lack of proper preparation: This is the most common mistake faced by most small businesses. Not sitting down to count the cost and determining all that it takes to get your business standing and fruitful for years before kicking off will result in an unforeseen pressure leading to abortion of the business untimely. Some business professionals advise that before starting a business, at least 2 years of thorough planning is recommended.
Pricing issues: It becomes a bad sale when inexperienced sellers don’t know the actual value of their business. Setting the price too low may cause the buyer to have a bad feeling regarding the business and when critically studied and evaluated by them can be a plus on their side whereas a high price surely might repel them off. Is advisable to conduct a perusal study on the actual valuation of one’s business and setting a price equivalent to its worth for a smoother deal.
Lack of promotion: Most times business owners employ brokers or influencers to do the marketing & promotional work for them. The truth of it remains that there is no one more passionate, motivated, and knowledgeable regarding your business than you. As the vision bearer, only you can give in the best to see your business grow than any other person. Even if there is a necessity to employ the hands of an influencer, make sure you don’t stop advertising your business from your end.
Wrong identification of buyer: There is no written law that states that the first buyer that comes to your doorstep is the best. Take your time and selectively pick the right buyer and at the same time don’t waste time with the wrong buyers.
Payment acceptance other than cash up front: Some business owners make the mistake of selling their business and accepting payment overtime or perhaps accept shares in the company acquisition. There is a high risk associated with such transactions because during the long run if the business begins to yield poorly the buyer may choose to leave the business for you know that he won’t lose greatly. The banes of it still fall back to you; you lose your share interest, get your dying devalued business, and are left empty.
Avoiding these aforementioned mistakes can help you whenever you choose to sell your business or not predispose you into selling your business prematurely.
