Mistake #4: Asking too much or too little for the business
Setting a very high or unrealistic price tag on a business can lead to a dead end street. Expecting to get top dollar for a business that generates little or no profit is simply using bad business sense. Consider your industry, similar businesses, the economy and your marketplace when pricing your business to sell.
On the other hand, a business that does not generate profits may do well with a going-out-of-business sale. This type of sale can generate instant cash flow and quick turn over. Too many business owners that have not turned a profit, or have cash flow problems, miss this wonderful opportunity. Some reasons they miss out is due to lost energy and/or motivation or because they may not want to admit defeat or failure. Remember it is business - don’t worry about taking it personally. Look for the most valuable opportunities for your business.
Another mistake is to price the business too low. Often business owners will price their business low because they are burned out, suffer from an illness or did not get good advice. Do your homework first! Listen to brokers and consultants. Do research about other business sales before jumping in with both feet.
Mistake #5: Selling to the wrong person
Taking the first offer may not be a wise choice. This may not necessarily be your BEST offer. Selling your business for top dollar with little or no money down along with an extended contract may lead you to losing it all. Business sales often go bad after the new owner takes over. The new owner may lack business experience, have a closed mind or be a poor leader. The list goes on and on. A successful business owner makes it looks easy, but change that mix and disaster may strike. When this happens, the new owner ends up going out of business and leaves the previous owner holding an empty bag. It saddens me to see a business fail after years of success due to this lack of business sale judgment.
Evaluate your options and make the best selection for the long term. Ask yourself, is this the best person to buy and run my business? Or, can they quickly connect with my customer base and learn how to market effectively? When the business sale goes as planned, it creates a tremendous opportunity for both business owners and the success continues.
About the Author
Debbie Allen is one of the world’s leading authorities on sales and marketing. She is the author of five books including Confessions of Shameless Self Promoters and Skyrocketing Sales. Debbie has helped thousands of people around the world attract customers like crazy with her innovative, no-cost marketing strategies and secrets to sales success. Her expertise has been featured in Entrepreneur, Selling Power and Sales & Marketing Excellence. Sign up for her free 6-week e-Course Business Success Secrets Revealed and take the online business card quiz to rate you marketing online now at www.DebbieAllen.com.
