Trying to sell your business on your own, having not done it before, can be fraught with danger!
As the old adage goes, “You don’t know what you don’t know!” There’s always the chance that you luck your way through, and all hail to you if you manage to do so.
But what I know for sure, as an experienced Business Broker, is that most do not sell, or sell well.
You (as the owner) eventually use a Broker after trying unsuccessfully to sell.
In many cases, all that’s unfortunately been achieved is that it takes a whole lot longer to sell, and by having potentially taken your eye off the business ball, the numbers may then reflect the distraction (which is not good for sale purposes).
So why consider using a Business Broker from the outset?
- We are licensed to assist in the buying and selling of businesses, at the State level
- We have insights, gleaned over many years, into specific industries or type of businesses
- We maintain confidentiality of buyer/seller
- We act as a buffer between the buyer and the seller
- We have a working knowledge of accounting, financing, legal, marketing, etc. to avoid unnecessary surprises in a transaction
- We play the role of the “conductor of the orchestra” and even the “project manager”
If trying it yourself is what you want to do first, then watch out for these common mistakes to avoid when exiting—
- Focusing on the bigger picture
- Doing your own research of your own market
- Thinking through the “risks” – it’s almost impossible to be “risk free”
- Entertaining a willingness to accept risks (example: special conditions that can “kill the deal”)
- Regarding the probability of things going wrong
- Reviewing the seriousness of quantifiable damage
- Budgeting for upfront costs
- Adapting “generic due diligence checklist/template” to your needs or size of the transaction (example: using a checklist suitable for a multi-million dollar enterprise on a small business)
- Deeming it worth the extra expense to seek input from accountants and solicitors with your particular industry expertise, while maintaining an existing relationship with your accountant or solicitor
- Being sure of who or what professional to seek appropriate advisement from
- Understanding the limitations of what the professional advisors can provide
- Giving appropriate instruction to the professionals engaged
5 tips to help enhance the sale price of your business
By answering these five questions, you are seeing your business popping on Buyers Goggles—
- Saleable? (i.e., not revolving around you)
If the answer is NO to any of these, then you/we have got work to do!
For further details, including the date of my next workshop or webinar, please contact me via email: firstname.lastname@example.org to find out more.
the entrepreneurial mother®
specialising in Finishing Unfinished Business!
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