Common mistakes when selling a business

  • by Krystena Petrakas 
Sell a business

Selling a business is by no means an easy task and if a seller makes one mistake they could lose money, sleep and maybe a deal.

This article outlines some common mistakes and highlights the importance of getting things right from the start. 

Wrong price

This is the main reason businesses don’t sell. Overestimating the price of your sale can lead to buyers not taking you seriously. If you don’t know how to value your business seek advice from a broker who will give you a valuation based on industry norms and the profitability of your business. 

Fundamentally, a business is worth whatever a serious buyer is willing to pay. Have a firm idea or a benchmark of what you would like to achieve from your business sale. 

The listings on BusinessesForSale.com in your particular industry offer a useful guide to the kind of prices achievable for a business like yours. 

Unprepared

Many vendors advertise their business without really knowing what is involved in a sales process or what they hope to get from the sale. Inadequate preparation on a seller’s part can frustrate buyers and waste everyone’s time, and is likely to result in no sale. Don’t underestimate the amount of time and effort you need to dedicate to your business auction.

Inadequate information

Failing to show accurate, up-to-date financial figures can kill a business enquiry dead in the water. If you don’t answer the buyer’s questions efficiently and promptly they will quickly become disinterested in the business.