As an entrepreneur, you spend a lot of time developing and growing your business. Not only have you come up with the product or service, but you also had to make investments in how you and your employees would make it all happen.
When it comes time to sell your business, it can be difficult to know what to do, especially if it is your first time.
These are some of the most common mistakes people make when selling their business.
The temptation to go it alone
There tend to be entrepreneurs. Those who know when they need help, and those who overestimate how much they can do on their own.
If it is your first time selling a business, it is important to look for support. Talk to people who can offer advice and feedback about your potential sale, including:
- People in your network who have been in your position
- Partners in your business
- People who have knowledge in a specific area, such as a skilled accountant or real estate agent
While it may be true that you have gotten to where you are on your own, this is not a time to be a maverick. If you are unsure about a certain aspect of selling your business, it is important to seek knowledgeable help.
The price is wrong
You have spent a lot of time investing in your business, and you want to feel like you are getting a good return on your investment. Part of getting a good return is the price you can get when you sell your business.
Deciding on the sale price, however, can be tricky. If your price is too high, you may not get any offers, but if it is too low, you will not get what your business is worth.
Often, business owners will over or under-value their investment and come up with a price that is too far off from where it should be. Setting the price of your business is a good place to call in knowledgeable help. Talk to someone who can give you an objective analysis of what your price should be and why.
Avoiding these common pitfalls can help you get the most out of the last transaction you make for your business and help fund what you can do next you invest your time into next.