You might not believe it, but selling your business in Salt Lake City is one of the best business decisions you could make. There are actually a lot of good reasons for selling a business. For one, you might be tired of running it and are looking at something new that captured your interest. But whatever your reasons are, there are five mistakes that you must avoid when you finally make up your mind.
Don’t Make These Five Mistakes When Selling Your Business
Many people dream of having a business without considering that it’s tough to run one. If running a business is easy, the majority of the people are entrepreneurs, but that is not the case. Most people would rather have a nine-to-five job because it’s more predictable than running a business. If you’re selling your business because you’re tired of it, you’re likely to make these five avoidable mistakes:
Not planning in advance
You can’t just wake up one day and decide to sell your business. Decisions like this take careful planning, so you don’t miss the valuable window of opportunity. Keep your updated records, sales portfolio and a complete history of your business handy because you just don’t know when the perfect buyer will come in.
Not having the right representation
You need a good broker to sell your business. You can’t just pick the first person who shows up to list your business and get the ball rolling. Hasty decisions like this will cost you time and money in the long haul. Take the time to interview your broker and inform him or her of your expectations because this will lead you in the right direction.
Putting all your trust in the broker
Once you have a broker, you should still take an active role in selling your business. Entrusting everything to your broker is a deadly mistake. Since you know your business better than anyone, no one is as motivated and passionate about it than you. You are still the best person to sell your business.
Not having the right price for your business
You should have a realistic price for your business in mind long before the first buyer comes in. It should be based on how profitable your business is and not on some fantasy dollars that you want to get.
Picking the wrong buyer
Business often goes downhill after the new owner takes over. He or she may lack the leadership skill or the experience needed to run it as successfully as you did. With this in mind, you must choose the right person to buy your business, especially if you have an extended contract of sale.
Business owners make these avoidable mistakes when selling their business all the time, and in the process, they end up losing thousands of dollars. When this happens, all your planning and hard work goes down the drain. It’s important to know the right things to do to ensure the success of the transaction and the business you just sold.