5 Mistakes Most Business Seller Makes

What Common Mistakes to Avoid When Selling Your Business

First-time business sellers often have unrealistic expectations regarding the value of their company. Because of all the work and effort they have placed in their business over the years, it is only natural that they see their business as being worth more than actual market value. However, mistakes such as overvaluation can have negative consequences on the salability of their business. Regardless of the type of business or industry your business belongs to, knowing what mistakes to avoid can help you get the best outcome for your business.

Here are 5 mistakes a seller should avoid:

1. Insufficient Preparation. One of the most common mistakes every small business owner makes when first deciding to sell their business is not properly preparing the business for sale. Responsibilities such as organizing financial statements and sorting out leasing and staffing issues can have huge impact on the salability of your business.

2. Not Hiring an Experienced Broker. In an attempt to save money, many small business owners make the mistake of attempting to sell their business. While small business owners may be experts in running their business, they are, however, not experienced in selling them. Making this mistake often costs the seller valuable time and money as they struggle to attract serious buyers.

3. Taking a Hands-Off Approach. Unfortunately, many small business owners believe that as long as they’ve hired a business broker, their job is done. While a professional broker will work hard to market and sell your business, the real work still comes from the seller. Once the broker locates qualified buyers, it is up to the seller to instill confidence that the business can be purchased and managed successfully.

4. Pricing Too High. Because of all the hard work and effort that has been invested in the business, it is only natural that the owner would want to get the most money for it. However, pricing the business incorrectly can have negative results. It is important that sellers avoid pricing mistakes by conducting a proper business valuation based on the current marketplace prices before listing their business.

5. Misrepresentation. Small business owners are often tempted to exaggerate numbers, distort projections and even cover up problems. While it is only natural that a seller wants to portray their business in the best light, there is a huge distinction between doing so and misrepresenting your business to prospective buyers. It is important that sellers avoid potential legal problems led by misrepresentation by working with an experienced broker.

There are many factors that affect how well a business may sell. At Florida Connexion Business Brokers, we have the extensive experience needed to help sellers secure the most profitable results. Our brokers provide the expertise and counsel you need to sell your business for the most money, in the timeliest manner. Contact us today and get the results you want.