4 Mistakes to Avoid When Selling Your Business
Are you thinking about selling your business? Then, you’re in the right place. Selling a business requires extensive planning, the right resources, and high-impact connections. We have outlined a list of things to avoid when you’re going through the process.
1. Not Getting Professional Advice
One of the worst things you can do is not seek advice from someone who has sold their business in the past, or a professional who works with business owners who have. It is also crucial that you speak with your lawyer, so you have a clear understanding of your legal obligations during a sale.
2. Lying
You want to be straightforward with a potential buyer. Although you want to paint your business in a favourable light, misrepresenting your business will cause far more problems (financial and otherwise) in the long term. It’s also essential to have your supporting documentation in order to make the transaction smooth and effective.
3. Not Having a Transition Plan
As a business owner, you should have an exit plan that cuts you out completely. It should include the following:
- Well-organized financials and other records
- Notification to investors/partners
- An internal notification to your employees
- A notification to repeat customers who may be affected by the change
4. Having No Patience
Selling a business is a timely process. It is best that you go into it without the expectation that you will sell your businesses right away. Be patient and ask potential buyers lots of questions. You want to ensure the next person running your business is the right one.
Once you are ready to put your business up for sale, reach out to our team at BuyAndSellABusiness.com if you have any questions or concerns setting up your listing.
Opinions expressed here by contributors are their own.
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