5 Mistakes You Should Avoid While Selling a Business in Dallas, TX
While most entrepreneurs do realize that making an exit from their business will not be easy, many are taken aback by how difficult it can be to sell your business for a good rate within a decent timeframe. Considering the current economic environment, selling a business in Dallas, TX is not as easy as it used to be, and you always have to be on your toes.
As the time period for selling a business increases, owners start getting frustrated over why things are not phasing out as successfully as they should. This creates a hysterical situation that can impact the maximization of your sale. This panic and frustration can essentially be avoided if business owners have the right information pertaining to the sale of a business up front. With sufficient information they can stop themselves from being impacted by mistakes that we have mentioned in this list. Read on and make sure that you avoid these mistakes while selling a business in Dallas, TX.
Insufficient Preparation
Selling a business in Dallas, TX is not an easy task. While business owners do realize the implications of this process, they enter the market without any prior preparations. Lack of preparation is literally the most common mistake made by small-business owners when they want to sell off their business. Just like you would want to spruce up your car or house before you hang up a ‘For Sale’ sign outside in the yard, you would also benefit by addressing key aspects of the business before you list it in the market for sale.
Key issues such as no financial documentation, lease issues, sustainable profitability and staffing problems can eventually impact the price that your business bags in the market. If you plan to sell a business in Dallas, TX you should start preparing from right now. Many brokers recommend owners to start making a business sellable from 2 years in advance to bag a good price.
Overconfidence
Although there is not a lot wrong with being confident about successfully selling your business at a reasonable price, overconfidence can make you neglect things that are deemed necessary for bagging a good price for your business. Numerous business owners go into the market with the belief that they will land a good price just because they think that their business is worth it. On the contrary, estimations in the real world are based on the financial feasibility and calculation of the business and not on the personal estimation that the owner has of its worth.
To avoid this mistake, you should either take professional help or you can visit online websites to compare businesses that are being sold with your own. If you do this early in the process, you would actually end up identifying all the aspects you are lacking in and the preemptive measures you should take to avoid below-par offers from buyers.
Reluctance to Leverage Professionals
You might be an expert at running your business, but you are no expert at selling it off. Despite what we just mentioned, most business owners are averse to hiring a broker in Dallas, TX for facilitating them in selling off their business. This attitude actually means that you are losing out on a professional who knows the market in and out and can really help you out in getting a good deal. Saving the few percent of brokerage fee might sound like a good deal at the start, but if you get the right help from a broker at the right time, they could easily add 10-12 percent to the value price that your business will probably get. Most owners commit a horrendous mistake when they think that they can handle the whole sale by themselves and don’t require any external help. This policy just deteriorates the situation and will eventually mean that the time period you have in mind for selling a business in Dallas, TX will have to be extended because you are unable to process the deal within the specified time. Besides just getting you a better deal, brokers can also help in marketing the deal, fixing meetings, showing the business space to the potential buyer and negotiating the right deal. Thus, don’t hesitate in leveraging the expertise of professional who are good at doing what you are unable to do right now.
Pricing Problems
Inexperienced sellers, who want to keep the whole process in their own hands, have this tendency to set a high price for the business before they have actually determined the overall value. Setting a high price for your business can prove detrimental because the price of your business is the single most important factor in determining how long your business stays in the market. Sellers who have not taken the time to study the overall value and setting a decent price based on that lose out on potential buyers who would have been interested in the business had the price been a bit lower.
Moreover, another mistake related to pricing that should be avoided is entertaining only all-cash offers. Mentioning that you would entertain only all-cash offers is nothing more than a recipe for prolonging the period your business stays on the market. Not many potential buyers have the resources to fund for a business right at the spot. Here you can take the help of business accountants to set a mode of payment that is feasible for all. Setting options for deferred payments or even seller financing would mean that more people are interested in making the purchase.
Confidentiality
It is also to be noted that confidentiality is an important aspect throughout the whole process. If word goes out that you are selling your business then many factors including sales, staff performance and turnover would be negatively impacted. A broker would be perfect here since they know how to keep things confidential when you are selling a business in Dallas, TX.
Make sure that you have the right expertise at your side when you are selling a business in Dallas, TX by getting in touch with Kirksey Business Brokers.