There are different reasons for selling a business: starting with the founder’s desire to go on vacation and ending with the fact that the sale was the initial goal of the founder. Market statistics show that for 10-12 applications for sale there are only 2-3 potential buyers. Only 15-20% of the exposed objects can be sold at a price that more or less satisfies the owner. Why? Mainly due to poor pre-sale preparation. 

Selling a small business is not easy. Here you should not hope for a lucky chance, but you need to calculate in advance all the possible risks of such a sale. All the secrets of a successful deal, as well as typical mistakes when selling a business, will be discussed in this article.

Mistakes to avoid when selling your business

1. Unjustified price

One of the most common mistakes sellers makes when selling their business. It concerns both too-low and too-high prices. It may be difficult for the owner to correctly assess the value of his business. In such cases, it is worth using the services of a company that will help you with the sale of your business online, such as Website Closers (See Website). Specialists will analyze not only the company’s accounting and assess tax risks, but also analyze its investment attractiveness. In the process of evaluation, the competitive environment is studied, and compliance with corporate rights and labor relations is checked. At the end of this check, you will receive a report on the real value of the business.

2. Offer to sell your business to competitors.

At first glance, it does not seem strange at all. Competitors are interested in buying your business because it will help them expand and remove one rival. However, this is the very pitfall to avoid when selling a business. You run the risk of losing or destroying your business even before you sell it because, under the guise of a potential buyer, competitors can resort to various actions to harm your business. In addition, your competitor is not interested in the equipment, store, or product, only the customer base, and this significantly reduces the purchase price.

3. Untimely sale of the business

When selling a ready-made business, it is important to choose the right time for the sale. After all, tomorrow the price of the business may rise or fall. Having decided to sell the business, the owner should try to increase the value of the company, analyze the possibility of increasing current assets, and collect receivables from buyers.

Even at the stage of deciding to sell the company, you need to carefully study the market of supply and demand. After all, if there are many offers in this market segment, the value of the business may be low.

4. Selling a business without any strategy.

Often, company owners spend a lot of time advertising their products but do not place offers to sell the business. Or offers are placed on free sites that serious buyers do not always view. It is worth remembering that for the deal to be successful, it is necessary to take a responsible attitude to the sales strategy: choose specialized resources for ads, set up advertising, and be ready to communicate with potential buyers a lot and often. Only in this way you can get the maximum benefit from the sale. 

5. Communication with only one client.

It often happens that the seller agrees with the first candidate for purchase, and stops negotiations with other candidates. And everything seems to be fine: the parties have decided on the time and price of the sale. But at the appointed time, the buyer suddenly refuses to buy or reduces the purchase price of the company.

The seller has to start all over again, and time is already lost. In such cases, it is advisable to conclude a preliminary agreement, which provides for the liability of the parties in case of non-fulfillment.

These are the most common mistakes when selling a business. Because of this, they often come across unfair competitors or fraudsters. If you do not want to lose your company, carefully check whether you are not doing mistakes when selling your business.

In principle, the sale of a business should be treated very carefully and cautiously, because sometimes competitors come under the guise of a buyer, trying to find out some secrets of your business, and find out information about partners. You can protect yourself from all this if you act correctly. For example, use this list of mistakes when selling a business. Sell wisely, then your deal will bring you the greatest profit.