Myths about Selling a Small Business in Keller, Texas
It’s not every day that you build a small business, neither is it every day that you sell one. Selling a small business in Keller TX is worlds apart from operating a small business.
When you establish and operate your small business in Keller TX, you acquire and implement the maximum amount of entrepreneurial knowledge and expertise that would result in a successful small business operation.
However, when you intend on selling the same small business in Keller, Texas, a completely different set of skills is required to successfully carry out this mission. Sure, selling a small business is a complicated task but with the right knowledge, tools, understanding and awareness, you can easily overcome this challenge as well.
So before you sell your small business, make sure you acquire maximum knowledge about the trends of the market place in Keller, Texas. Talk to other sellers and read through the historical patterns to get an idea of the market’s requisites. This way, you will get an overall know-how of what to expect when selling your small business.
With that being said, let’s take a look at the common myths about selling a small business:
“The price I decide is the price I get”
The definitions of sales valuation price and the price you ask for are dimensions apart. The asking price is the price at which you as an entrepreneur would estimate your business’ selling price. Whereas, the sales valuation is the price at which the financial statements would value your business at.
Business valuation takes into consideration the:
- Assets
- Goodwill
- Liability
- Capital investments
- Revenue expenditure
- Cash flows
The valuation of the business, after the adjustment of depreciation value, is the closing of business valuation. The price at which your business is bound to be sold is near or less the same as the year end closing valuation.
You can’t ask for a price you deem fit.
“I will ask for a price at which the forecasted business revaluation value”
This is another myth you might believe in as an entrepreneur who is prone to be biased. When you are selling your business, keep aside the overestimation of your business just because it was a manifestation of your diligence. When you’re selling your small business in Keller, TX, you’re no longer the owner operating it; you’re the sales person selling it. And a buyer will only buy a small business that is rationally and reasonably valued.
Claiming a price according to the upcoming years’ forecast would be completely absurd. The business valuation takes place as at the current year’s end, regardless of what happens in the future. This is why, you must stop believing in the myth that a predicted price can be asked. Only price the sale of your small Keller business around the amount of its year end valuation.
“I can sell when I want to”
Do you wish to sell your small business in Keller TX in return for a highly lucrative business opportunity that just breezed through your doors? Then pre-plan the sale of your small business.
A common myth suggests that you can sell your small business whenever you want to because as an entrepreneur, you can do whatever you wish to do with your business. Yes, you can but to perfectly execute a plan you must take careful steps accordingly.
Selling a small business successfully requires a long period of deliberate thoughtfulness invested in choosing the right entity to sell your business to, listing your company, accumulating all the financial records, adjusting and amending your financial history, compiling a list of your financial transaction and even reinforcing certain sales policies. Paying off debts and updating cash flows and income statements is also an essential step in the process of selling your small business in Keller, TX.
So, if you plan on selling your small business in the near future, the right time to begin planning, plotting and devising the ideal strategies is now!
“Now that I have done everything- it is only a matter of days!”
Wrong, it isn’t! This is one of the most misleading myths out there that people believe in. Just because you have listed your business in the sales market and hired the best business broker in town does not mean your small Keller, TX business will sell right away.
To execute the sale of your small business successfully, you must develop high levels of tolerance and endurance within. Truly, the sale of a small business is a complicated and time consuming process and just like Rome was not built in a day; it cannot be sold over night.
An estimated time line to sell your business in Keller, TX can vary from 6 months to a year. It could exceed too, depending on the demand for your business’ niche in the market.
Till then, make sure you have enough surplus cash to finance your monthly expenditure.
“The ideal buyer will transcend from the heaven and pay off the price at once”
In a utopia, this would have been possible. However, in a world where the decisions of others affect our own interests, this myth is far from being true. An ideal, serious buyer could be a potential but may lack sufficient funds to finance the overall sum of the business valuation. If the buyer does not have enough capital at hand, you could either lose a somber lead or you could settle for a price that is not worth the integrity of your business just to retain cash in the short term.
What you could do in such a case is to refer your buyer to one of your previous creditors in Keller, TX. Your business reputation is already in a positive light. Just reassure to your lender that the business will continue to flourish so the buyer would be able to repay the debt’s amount in time.
What to do?
Are you looking for a reliable business brokerage that could assist you in successfully selling your small business in Keller TX? Look no further, Kirksey Business Brokers are right at your service! Head over to our official website by clicking here.