Biggest Mistakes to Avoid when Selling a Small Business

When it comes time to sell your small business, you want to make sure that you avoid making any major mistakes. If you wait too long to sell, you may miss out on a great opportunity. If you don’t find the right person to represent your business, you could end up selling it for much less than it’s worth. And if you don’t market the business for sale, you may not get the best price. In this article, we will discuss five of the biggest mistakes to avoid when selling your small business: Not finding the right person to represent the business: If you don’t find the right person to represent your business, you could end up selling it for much less than it’s worth. It’s important to find someone who knows how to negotiate and who has experience in selling businesses. Otherwise, you may not get the best price for your business.
Most sellers don’t expect the exit from their company to be easy, but many are surprised by how difficult it can be to sell their business for a good price in a reasonable timeframe, especially in the current economic environment. It’s important, however, to not let frustration get in the way of maximizing your sale. —Entrepreneur.com
Before you speak with a business broker, it’s highly advisable to get your corporate affairs in order and understand the process. An experienced business consultant can help with these and much more. The bottom line is, that you need to know key details in order to identify the right buyer. Forgoing marketing the business for sale: If you don’t market the business for sale, you may not get the best price. You need to let people know that the business is up for sale and you need to promote it in order to attract potential buyers. You want multiple buyers interested in making offers so that the demand drives up your selling price. This doesn’t mean spending copious amounts of money. But, it does mean advertising smartly to the right people. Asking too much or too little for the business: If you ask too much for the business, you may not get any offers. If you ask too little, you could end up selling the business for less than it’s worth. It’s important to find a fair price that will attract buyers but that won’t leave you feeling like you’ve given away your hard work for nothing. Conversely, if you put it up for sale at a discounted price, otherwise interested buyers might think you’re trying to sell to get rid of a headache. Selling to the wrong person or other company: If you sell to the wrong person or other company, you could end up regretting it later. Make sure that you know who you’re selling the business to and that they are someone who will be able to take it in the direction you want it to go. In other words, someone who shares your business values and approach. Otherwise, you could see your beloved creation turn into something you would never want it to be. These are just a few of the biggest mistakes to avoid when selling your small business. By following these tips, you can help ensure that you get the best price for your business and that you don’t end up regretting the sale later on. If you have any questions about selling your small business, please feel free to contact us anytime! We would be happy to help! Interested in learning more about starting, running, buying, or selling a business? Then just visit Waters Business Consulting Group.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

How To Quickly – But Smartly – Fill a Very Sudden and Unexpected Vacancy in a Key Position in Your Small Business

How To Quickly – But Smartly – Fill a Very Sudden and Unexpected Vacancy in a Key Position in Your Small Business Ever been hit with the unexpected departure of a key team member, leaving a crucial role vacant? It’s unnerving and quite unpleasant. But, don’t panic. There are effective strategies for dealing with this very situation. Well, you’ve found the right place to get the advice you’re seeking. In this article, we’ll explain the art of filling a vacancy rapidly – but strategically. So, let’s transform this challenge into an opportunity for growth with a playbook that ensures your business sails smoothly through uncharted waters. How Small Business Owners Can Fill a Vacancy in an Important Employee Role You know that sinking feeling. The email arrives or the text chimes and suddenly you’re staring at a gaping hole in your team – a vital position vacated without warning. Your brain screams, “Oh no!” Breathe and step back. We’ve all been there. But here’s the good news: filling an unexpected vacancy (especially in a small business where everyone wears multiple hats), doesn’t have to be a disaster. With a sprinkle of MacGyver ingenuity and these battle-tested strategies, you’ll not only plug that gap, but you might even emerge stronger on the other side. Step 1: Triage Time – Assess the Damage and Your Options Before you launch into a hiring frenzy, take a moment to assess the situation. What’s the critical function of this role? What are the immediate needs, both short-term and long-term? Can existing team members temporarily cover essential tasks, or is a full-blown replacement a must? Remember, you’re not just filling a job description; you’re patching a leak in your ship. Prioritize tasks that keep the boat afloat, delegate where possible, and resist the urge to overthink things. Step 2: Forget the Perfect Fit, Embrace the Quick Fix Casting a wide net and hoping for the “unicorn candidate” might not fly right now. Instead, embrace flexibility. Consider internal talent – that design whiz who secretly loves spreadsheets, or the customer service rep with a developer’s mind. Could upskilling or cross-training bridge the gap? Think outside the traditional “employee” box too. Could a freelancer, consultant, or even a temp agency be the right way to go as a short-term fix? Feel free to get creative and mix-and-match solutions to find the right puzzle piece for this immediate need. Step 3: From Panic to Process – The Art of the Speedy Hire Even with a “MacGyver approach,” you still need some structure. Here’s how to turbocharge your hiring process without sacrificing quality: Crystallize your ideal candidate. What skills and experience are non-negotiable, and what can be learned on the fly? Craft a concise yet compelling job description highlighting the immediate need and your company culture. Tap into your network. Emergency situations necessarily call for emergency measures. Reach out to your trusted network – colleagues, mentors, even former employees – and spread the word. You might be surprised at the hidden gems lurking just outside your usual talent pool. Master the “interview-a-thon.” Time is of the essence, so ditch the five-round interview marathon. Utilize video calls, skills assessments, and even a good old-fashioned phone chat to quickly gauge potential. Look for passion, adaptability, and a willingness to jump in headfirst – those are the qualities that will get you through this storm. Step 4: Remember, You’re Not Drowning, You’re Surfing – Embrace the Learning Curve and Lean on Your Team Filling a sudden vacancy is stressful, but you don’t have to go it alone. Your team is your anchor, your support system. Delegate tasks, ask for feedback, and foster a spirit of collaboration. This is a chance to solidify your team’s resilience and discover hidden strengths. And hey, if things don’t go according to plan at first? Don’t beat yourself up. This is a learning experience. Adapt, adjust, and keep moving forward. You’ve got the grit, the ingenuity, and the metaphorical duct tape to get through this. Stay Calm and Take Stock of the Long-Term Journey So, the next time the talent void opens, remember – it’s not the end, it’s just a detour. With a clear head, a dash of creativity, and the unwavering support of your team, you’ll not only weather the storm but emerge stronger on the other side. Now, go out there and show that unexpected vacancy who’s boss! Do you want your company to grow faster and earn more while you spend more time with your family, which is why you started your business in the first place? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 602-435-5474, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

Read More »

What to Do with an Unwanted Inherited Business

Owning a business is not something that everyone aspires to do. Sure, many people like the idea of being their own boss. But, there are definitely individuals who prefer to avoid the stress and anxiety of being an entrepreneur. Of course, there are many different sets of circumstances. For instance, children who follow their parents and run the family business, taking it over after their parents retire. Or, people who unintentionally fall into their own business without actually setting out to do so. For example, someone who inherits a business from a relative. Although this might seem a bit far-fetched, it does happen more often than one would think. So, what options are available to an heir who really does not want to take over the business? Types of Inherited Businesses Probably the most common form of an inherited business is a family company. Usually, the children grow up in and around the operation and are at least familiar with it. Other times, the children aspire to follow their own career path and never work in the organization. Additionally, there are heirs who inherit a family-owned business that they have never really been acquainted with whatsoever. If you’ve inherited a company, there might be a lot of questions on your mind. You might not want to be an entrepreneur, or even if you do, you might prefer to work in a different industry. Even if you’re ready to take on the business, you might be unsure about how to deal with current employees and suppliers. —Nerd Wallet Though these circumstances are far less common, they do occur. One prime example is someone who inherits a commercial property. That property is leased by several other businesses and generates a profit. The owners may not even be directly involved with the day-to-day operation and rely on a firm or individual to handle the necessities. These would include things like maintenance, repairs, negotiating leases, upgrades, and more. What to Do with an Unwanted Inherited Business Your first instinct could be to just sell it and be out of the situation as quickly as possible. But, if it’s generating a consistent profit, that might not be a wise idea. On the other hand, even if it does generate a profit and you’re completely unfamiliar with it, it could turn into a gigantic mess. Here are some possible options to explore: Learn about the business. Regardless if you’re set on selling it or remotely considering taking it over, you’ve got to know what you’re dealing with first. It’s imperative that you educate yourself about the business in order to make an informed decision as to which way to go. Don’t make the mistake of letting your emotions take over. Instead, take at least a little time to understand precisely what it is and more importantly, how much it’s really worth. Consider being an absentee owner. Although this is quite common in the business world, it’s always a risky proposition. And, it’s probably why you don’t want to get involved in the first place. If you let other people run it, you’re putting your trust into others and that could easily lead to a very regrettable set of circumstances. However, if it is something like commercial property and your relative was also an absentee owner, at least give it some serious thought. Invest in the business. If you do want to give it a try, don’t go it alone. Bring in a business coach to guide you through the process of taking on an entrepreneurial role and become familiar with all it takes to head up this type of operation. If you find it isn’t a good fit, you can always sell it and move on. What other suggestions would you give someone in this position? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »