Mistakes to avoid when selling a business

Sometimes, small business vendors make fatal mistakes when they sell their businesses and lose a lot of money during this process. Here are some tips that will help you avoid these mistakes when selling a business.

1. Make a plan ahead of time, and do not expect too long to sell

Selling a business does not happen overnight, so long-term planning is very important. Keep accounting records, reports and documents up to date. You never know when the perfect buyer will show up and make you an offer that you cannot refuse.

2. Find the right person to represent your business in the sale process

This step is very important for the success of the sale. Many business owners choose the first person who offers to list their business, which can cost them time and money in the long run. After a few months, they will realize that they have no results, and they will have to start over.

3. Promote your business

Do not let the broker do all the advertising for the business. You are the best person to promote the business, because no one is more motivated, more passionate, and knows the business better than you. A broker will help you in this process, but you have to participate.

4. Do not ask for too much or too little for your business

Consider the industry, the business, the economy, and the market when setting the selling price. Make your homework first, and consult your business broker.

5. Do not sell to the wrong person

Accepting the first offer may not be the smartest choice, because it may not be the best offer. Selling a business at a higher price but without a good advance or to an inexperienced buyer can lead to bankruptcy and will lose you money. Weigh the options and make the best choice in the long run. Ask yourself the question: is this the right person to buy and run my business?