There’s no way to put this nicely – you don’t have what it takes to successfully sell your small business yourself. Selling your small business is a complex process loaded with unique challenges, frustrations, and pitfalls along the way. Choosing to go at it alone is the most risky decision an owner can make. Here are a just a few of the challenges you’ll face when you go at it alone.
Unrealistic Expectations.
You’ve nurtured this business from birth to what it is today. You’ve invested time, money and a lot of emotion. When it comes to your baby, you’re not entirely able to be objective about its pros and cons. Add to this, most small business owners have no idea what their company is worth in the current market.
This is why do-it-yourself listings either sit on the market for far too long or never sell at all. A broker can provide the objectivity crucial to successfully positioning your company against other businesses for sale.
Failing To Properly Prepare For A Sale.
Most owners have no idea how much groundwork is required before putting their business on the market. It can take from six months to a year to properly prepare. Most small business owners don’t have the time required to prepare for a sale. Add to this, preparation for a successful sale requires a systematic, strategic methodology:
- Multi-tiered analysis of the business-transfer market.
- Determining the true value of your business including equipment and stock.
- Compiling financial records, in the right way, for review by a potential buyer’s accountants and representatives.
Tackling The Negotiation.
It’s no surprise business owners who go solo often over-value their business. Yet, you’d be surprised how often the opposite happens. That’s right. Owners can and do leave money on the negotiation table because they’ve undervalued their business. Or, worse, buyers see the low asking price as a red flag indicating a problem and they don’t make an offer at all.
Even when a business is priced right, an owner attempting to negotiate a sale without the assistance of an expert broker is unaware of the concessions required – on both sides of the table – to successfully close the deal.
Partner With A Talented Broker.
As an owner, you know how to build a successful small business. But selling it successfully – for the price you want – requires an entirely different skill set and specialized expertise. An experienced, talented broker knows how to navigate the business-for-sale market, and streamline the selling process, in ways you’re unlikely to ever anticipate.
Besides – anyone interested in buying your business will have a broker representing them. You should have a skilled broker on your team, too. You took the risk to start your business, don’t risk losing it. Remember, selling your small business is not an easy task, leave the headaches to the professionals.
