If you are interested in selling your business, there are some basic mistakes business sellers make that can absolutely be avoided if you know what they are. Business transactions are inherently complex, so knowing what the most common pitfalls are can help to streamline the process by avoiding them.

Big Mistake #1: You aren’t 100% sure that you actually want to sell.

This one may seem a bit bizarre at first glance, but it is by far the most frequently encountered problem when it comes to deals coming apart on the seller’s side.

It can be frightening as a seller to look towards a closing table and see yourself as basically unemployed at the end. Your business is and has been your baby, and if you are the typical entrepreneur it has been basically your entire life. You really need to be ready before you decide to sell. Some serious introspection is necessary long before your business is listed.

Turning away buyers at the last minute because you have changed your mind can cause major problems with your credibility in the business market, as well as driving away good buyers you may not be able to get back if you change your mind once again and want to sell in the near future. Those good buyers you had a crack at will have bought something else and be long-gone. Ask anyone in the small business market, a good buyer is a precious commodity, not one you want to waste because of cold feet. In the same light, businesses that have come on and gone off the market repeatedly will cause suspicion in the buyer pool because anyone who looks at the business will wonder why you keep pulling it from the market.

Another huge no-no? Don’t test the waters to see what you could get for your business if you really want to sell quite a few years down the road. This causes the same problems we already have discussed, causing mistrust in the buyer pool from doubts about the stability of the business.

The key here? Decide if you really want to sell. Ask yourself (and answer) some hard questions before your business hits the market. Are you ready to do something else with your life? Do you have the financial means to be without a source of income for the period between closing and your next business venture? Are you going to be able to relinquish control of your business to someone who might completely and totally change everything you have built?

Are you considering selling, but have not yet made up your mind? Do you have questions about when the best time to sell would be? Please leave us a comment or question here, and we will be happy to assist you.

Want to read Mistake #2: The Box-O-Paper Financials? Click here.

Want to read Mistake #3: All-Cash Greed? Click here.

Want to read Mistake #4: Letting Unqualified Buyers in the Door? Click here.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com