Published : 1 February 2016
There are many reasons why you, as a business owner, may decide to sell. Perhaps retirement is beckoning, or you are facing health issues. You may wish to try something new and different, or you may simply recognise that the business is doing well so it's an excellent time to sell.
Whatever the reason, one thing remains the same - this is a major asset, that has taken blood, sweat and tears to build up, so you need to achieve the best result with minimum stress.
Here are some mistakes you don't want to make!
UNDERESTIMATING THE VALUE
When it comes to selling property or a business, everyone's going to haggle over price. That's natural. So you need to be clear right from the start about the true value of your business. The price you arrive at will be based on many things, including the type of business; the location; the turnover; reputation and goodwill, and inclusions. Decide on a price and you are prepared for all offers.
STATING AN ASKING PRICE
This is very different to DECIDING on a price. Some people say putting a price on a business creates a ceiling. Others say NOT stating an asking price puts people off, because they don't want to ask. Some vendors state an asking price but add 'negotiable'. If you're unsure, take some advice from your solicitor and accountant, and talk to those helping you sell.
AUTOMATICALLY APPOINTING A BROKER
The above point brings us nicely onto this one! Don't just assume that the only way to sell your business is through a broker. Unless you are truly happy to give a large chunk of your profit away! Increasingly, those selling properties and businesses are electing to do so themselves, with the help of a specialist company like Coast to Coast Media.
Australian-owned and not affiliated with any real estate agencies or brokers, Coast to Coast provide the tools and support needed to successfully sell - and you don't pay a cent in commission. They also have a very successful buyer-match service.
You're sure to have seen businesses for sale where it states 'vendor finance available'. Again, this is a point for debate. True, it could attract a buyer you might otherwise have missed, but be very sure that you WANT to do this, and that you CAN do this. Selling your business is meant to improve your financial position, not hinder it!
DON'T BE A PUSHOVER
Remember, it's your business and your sale. Whilst doing all you can to help potential buyers, and providing everything they need to know, don't be a pushover and let them take charge. You call the shots on price; inclusions, and timescales.
NEGLECTING YOUR BUSINESS
The process of selling your business will obviously take up a chunk of your time and, however smoothly it all proceeds, there will be stress involved. You could easily take your eye off the ball of actually running your business during this period. Well, don't! Now, more than ever, your business needs to be in good shape, with everything running smoothly and a happy workforce.
YOU CAN'T DO EVERYTHING
While you no longer need a broker or a real estate agent to sell your home or business, you do need professional help when it comes to money and the law! Unless you are qualified, it's best not to try and do all the finances and contracts yourself because, if you miss something, you could lose the sale, or lose a big chunk of cash. Or even break the law. Talk to your solicitor and your accountant from Day 1.