- Missing The Window Of Opportunity
Planning ahead and choosing the right time to sell a business are both critical to a successful sale. On average, a small business will be ready for sale within 2 to 4 years of starting making a long-term plan essential. Planning must include updated record-keeping, recording the history of the business and a detailed sales portfolio that should be available for prospective buyers at all times. There is simply no way to tell when the right buyer will come along and make an offer that just cannot be refused.
Failing to plan for succession is a common mistake for small business owners. A successor does not have to be a family member but should be prepared to succeed you in running every aspect of the business. This will show potential buyers that you have planned for the sale of the business and that this is not an impulse sell that has been made because there are problems with the business or because of personal issues. A business that is not being deserted is likely to attract a much higher purchase price.
Speak to Net Lawman to avoid these common mistakes.
- The Middleman
Hiring the services of the right broker or consultant can make or break a sale. Business owners are often tempted to simply hire the services of the first broker that comes their way in an effort to get the business listed and start the marketing process. This can be a costly error in both time and money in the long run. Months can go by without any results meaning that you will have to hire a new broker and start from scratch having wasted all the fees that have already been paid.
Doing just a little research and personally interviewing a number of different business brokers will provide you with more realistic expectations of the outcome. If a broker is unable to deliver any results within the first month, they are probably wasting your time. It is best to move on sooner rather than later and start looking for a new broker. It is recommended to compare a minimum of 10 brokers before making a decision. A broker who is realistic and can provide a practical approach to the sale will deliver leads within the first month of listing the business for sale.
- Self-Promotion And Marketing
Leaving all the marketing and promoting of your business in the hands of a broker can be fatal. You will always be the best person to promote your business. Not only do you know your business better than anyone else but you are personally invested – no-one else is ever going to be as motivated or passionate about your business as you. Even if your broker is delivering leads, you should still be promoting your own business.
Instead of getting frustrated with leads that simply are not developing further interest, look beyond your immediate social group, work colleagues and community for areas to promote your business. Finding people who would be interested in buying your specific business is key to self-promotion and a great place to start.
The sales associates in any business are making contact with people who would most likely show interest in your business. Their natural sales ability can be turned to your advantage simply by offering an incentive such as a bonus to send potential buyers your way. Your phone should start ringing shortly after you have implemented this strategy.
This is also a great way to create a hype regarding the sale of a successful business. The more hype, the more potential buyers will be attracted by the prospect of buying a business that is already a proven success. Multiple buyers gives you the advantage to negotiate with buyers and even increase your selling price to make a greater profit from the sale of your business. Finding new or alternative means to promote and market your business other than through the use of a broker can be just what you need to seal the deal.
Retail is a competitive and tough industry. The most common reason for business owners to sell in this challenging industry is not because the business is a success but rather because it is a failure. However, with the right plan in place, you will be able to sell the business at its peak and attract a higher price. Potential buyers will want to know your reason for selling the business and may be suspicious of your motives, especially of the business appears successful. Your business plan and sales strategy will allay these suspicions and buyers fears. You started your business with a strong plan so it makes sense to sell it with a strong plan too.
