7 Things Not to Do When You Sell a Business in Keller, TX
When you are trying to sell a business in Keller, TX, you don’t expect it to be easy in any sense of the word. Neither do you expect it to be painstakingly arduous, but that happens to be the case most times. You may even be taken aback by how difficult it is to sell a business when you do it for the first time.
Getting a good return seems almost impossible in a suitable time period if you don’t play your cards right. The current economic scenario doesn’t help your situation either, especially when buyers know it’s their market (a buyer’s market).
When you sell a business in Keller, TX, it is your frustration that often gets the better of you and is the reason that you can’t get the maximum out of the sale. So, remember to keep your cool. Most frustrations can be overcome when the sellers in Keller, TX are equipped with the right information.
This information has to do with the perils involved with selling a business in the market given the current market scenarios. Although there are many challenges involved in selling a business, there are 7 that take the cake. Overcoming these is essential for you to be satisfied with your sale and yourself.
1. Being Too Confident
Not being confident is actually bad when you sell a business in Keller, TX, because it shows you are uncertain about the business yourself. You may scare off the buyer or you get less than what you anticipate. Being overconfident and (apologies for the language) cocky is the other end of the spectrum. You may start to avoid activities that are important when you start acting too confident.
Valuation of a business is based on measurable data and many people seem to forget that when they go into the market hoping that they’ll get their asking price, it just doesn’t always work that way.
2. Not Being Involved in the Process
Some people hire a business broker when they sell a business in Keller, TX. And then they feel that they can relax and need not take any stress and get disengaged from the whole process. They don’t realize that the broker’s job is only to take you so far, but the real outcome depends on the seller. It is the seller who must meet all potential buyers.
The seller has all the knowledge about the business and should be motivated to sell, otherwise the whole process is for naught. The broker is there to help you market your business but once he finds potential buyers, it is the seller who has to make the effort to give the buyer confidence that the business is worth it.
3. Not Hiring Business Brokers and Other Professionals
Some business owners just forgo hiring business brokers and other experts such as lawyers, financial consultants and accountants when they sell a business in Keller, TX, thinking that they’ll do it all on their own. What they forget is that while they may be experts at running their businesses, they aren’t experts at selling them.
It’s not worth it to avoid a fee of 10% when a business broker may just add an extra 12% to the overall sales price. There may be one off instances where you might not need their help, but in most you need them for preparation and showing to your potential buyers.
4. Lacking Essential Preparations
Not being prepared enough may be the single costliest mistake you make when you sell a business in Keller, TX. There are several things you need to take into account before you can list your business for sale. These include finalizing any documents, dealing with lease problems, reviewing the balance sheet and P&L (profit and loss statements) to ensure you have sustainable profits.
The review of the statements need to be started two years prior to listing because of the going concern principle. This is when you make sure that the business is making consistent profits and is sustainable to operate in the long-term. You need to look at staffing issues as well. All these things, along with competitive pricing and valuation need to be done asap.
5. Not Seeing Which Buyers Prequalify
Business owners looking to sell a business in Keller, TX don’t seem to be in as much of a hurry to find prequalified buyers as they need to. They are scared that they may drive away potential buyers and may even skip this altogether for that reason. Prequalification actually drives buyers into the sale than away from it.
Serious buyers only should be the approach to selling a business and prequalification helps with that. It may even protect crucial research and business secrets from going into competitors’ hands through unqualified prospects. You’re simply giving too much away.
6. Lying About your Business
You can’t possibly lie outright about your business, can you? You have a reputation to protect. You want to display your business in the best possible way to buyers without lying so you are seen as an honest businessman when you sell a business in Keller, TX. You may be inclined to extend the graphs and numbers and show projections at more favorable levels than they actually are. Don’t.
Misrepresenting your business will have you flagged as a dishonest business seller and may even get you into lawsuits. It would damage your reputation so it’s best to avoid doing this.
7. Forget to Keep Things Hush Hush
Customer and employee relations tend to sour if word gets out that the business is exchanging ownership. When you have a broker to help sell a business in Keller, TX, a certain level of confidentiality is maintained. Brokers help to promote your business to a restricted number of qualified potential buyers so the customer and employee relation does not suffer. This may be hard to achieve if you do it alone.
So, if you want to sell your business in a respectable manner and at a profit, choose Kirksey Business Brokers.