subject: Four Mistakes To Avoid When Selling A Business [print this page] Four Mistakes To Avoid When Selling A Business
Thinking to open a business and explore your dreams.Sounds great, right? But making a sale today is not an easy task as it appears.In fact, today'smarket is more challenging, time taking and needs more effort than in the past. Selling a business for making profit should be the goal when you open a small business. However, if problems and difficulties get in the way of maximizing your sale, these tips may help to avoid sale pitfalls, money loss and great disappointment.
1. Proper planning and not waiting too long to sell-Business owners may miss a window of opportunity by not planning ahead and waiting long to sell. A well set up businesses main aim is to build an asset, not just open a business.Pick the right time to sell when the right opportunity comes along. Long term planning, keeping updated records, knowing a thorough business history and sales portfolio at hand on all times is key factor to any successful business sale.
2. Proper pricing-As a seller you may have a tendency to fix a high price before you determine the true value of it. In fact, price is the single most important factor in determining how long your business exists in the market or simply the future of your business. Conducting a thoughtful valuation process and fixing price after a thorough study of the market price will indeed benefit the selling a business smoothly.
3. Not appointing an adviser-Very few business owners appoint an adviser skilled in negotiating and selling a business.The cost of such an adviser may seem expensive but the downside risks of not appointing and not being advised could in extreme cases result in losing the entire value of your business.
4. Finding right person to represent your business-As a right entrepreneur selecting right broker or representatives is very crucial to help small business owners achieve success. A wrong selection may cost you time and money in the long run. Very soon you may experience little results and may have to start all over again.
Therefore to approach in the right direction, hire slowly but constantly be looking for dynamic sales people. So that when opportunity arises the seller aren't scrambling to find the right candidates. Also seller should take time and expense to check references, provide job placement tests and interview in such a manner to hire the top sales person.
