Posted On Wednesday 17th May 2017 6:19 PM
For many small business owners it is their dream to one day to be able to sell their business and enjoy the financial rewards that the sale will bring. But for many their experience will be an inability to sell their business, being forced to accept a below market price or worse still having sold their business not even receiving payment for it.
Below are 7 mistakes not to make when planning to sell your business
1. Not planning to sell your business
If your desire is to sell your business, then you need to set a clear goal now as to what you would like to sell your business for. This will determine the likely future profit levels required by your business to justify your required selling price. Only by having a clear profit target can you develop a plan of action to achieve it. Without setting goals and working towards these you are less likely to have a business that can be sold for what you want.
2. Not planning your life for after you have sold your business
Too many business owners get excited about the prospect that someone wants to buy their business, and they don't look ahead and ask, how much do I need to retire or what will I do for the rest of my life. Afterwards business owners often find they are bored or worse they find that the money they received for their business is insufficient to support their lifestyle requiring them to return to work.
3. Reacting to a buyers proposal
Ideally you should take your company to the market when it is ready for sale and retain control over the sales process. When you react to an unsolicited offer from a buyer you inevitably give control of the sale process to the buyer reducing the strength of your negotiating position. An unanticipated sale might expose certain weaknesses in your business that you have not had an oppor