4 Avoidable pitfalls of selling a business
A lot of hard work and investment (personal and professional) goes into the building and growing of a business. For this reason, it can be a tough pill to swallow settling for less than you feel your business is worth when it comes to selling. There are 4 major mistakes of business owners make that can be easily avoided to make sure your business sale is a complete success, and you sleep easier after your exit.
1. Not ‘beginning with the end in mind’
Planning too late or waiting too long to sell your business means significantly reducing your ability to achieve maximum value at sale time. It also prevents you from reviewing your options and choosing the one that’s right for you and your situation and implementing strategies to successfully exit the business and leave a legacy.
2. Not having employees that think like leaders
Your star employees are the future of your business. Ability to provide feedback and take initiative to improve business performance are signs that they are invested in the outcomes and have the business’ best interests. Invest back into these employees by allowing them to become stakeholders and continue your legacy.
3. Not asking for the right amount
How can you put an appropriate sell price on your business if you’ve never had it valued? The value of a business can fluctuate depending on a number of variables and therefore could be worth significantly more or less at different points during its lifetime. Before you sell, understand what can implicate your business worth and how to maximise this so you walk away with your head high – and your pockets full.
4. Selling your business to the wrong person
You don’t want years of hard work to fall by the wayside, which is why ‘who’ you sell your business to is so important. Connecting to a network of qualified buyers and investors and staying on top of changes in the market for your industry will assist in determining who is right to sell to and for how much. There is also the issue of due diligence and navigating buyers, the market and ensuring I’s are dotted and t’s are crossed can be overwhelming. Not all business brokers are willing to hand-hold throughout the process so making sure that you have the right representation to conduct the sale will facilitate your business landing in the right hands.
Find out how Succession Plus can help you through the business selling process through a holistic and supportive approach.