{"id":11681,"date":"2023-04-05T10:30:48","date_gmt":"2023-04-05T16:30:48","guid":{"rendered":"https:\/\/www.sunbeltnetwork.com\/st-louis-west-mo\/?p=11681"},"modified":"2025-02-03T10:57:28","modified_gmt":"2025-02-03T16:57:28","slug":"common-mistakes-business-owners-make-trying-to-sell-their-business","status":"publish","type":"post","link":"https:\/\/www.sunbeltnetwork.com\/st-louis-west-mo\/common-mistakes-business-owners-make-trying-to-sell-their-business\/","title":{"rendered":"3 Most Common Mistakes – Business Owners Make When Trying to Sell Their Own Business"},"content":{"rendered":"

So many business owners don’t think their business is of value to anyone but themselves. They operate it with the hopes that a child or an employee wants to take it over and when that doesn’t happen, they just close the doors. When they end up reflecting on the business, they spent so many decades building, there is a bit of sadness that comes over them that they couldn’t see the business continue on.<\/p>\n

I really hope any of my readers are not in this boat!?!?<\/p>\n

I truly believe all businesses have true value. Then when you are ready for your next chapter, you can sell your business, receive the value you’ve built, transfer the responsibility to a new owner, and allow them to build value too.<\/p>\n

However, there are “things” that can inhibit a business from being sold. Thereby the owner doesn’t get the value they want, and the business doesn’t keep going.<\/p>\n

A business owner is in business to make a profit. Each business is unique and what we do with the profits is unique. But what we don’t realize are the decisions and actions we take that keep our business from having a value that gets a prospective buyer interested in purchasing your business.<\/p>\n

While you are still in business you compete in the marketplace to earn new customers. Getting your business ready to sell is no different.<\/p>\n

Knowing what a prospective buyer is looking for is just as important as knowing what they’re not looking for, so you have to find out what could discourage them from ultimately buying your business.<\/p>\n

So here are 3 common mistakes where business owners go wrong when preparing and can prevent your business from selling.<\/p>\n

1. Poor Planning:<\/h3>\n

The single largest mistake you can make during the sale of your business is going in blind. This is not the time to dip your toes in the water or \u201cjust see what happens.\u201d Selling a business is a significant life decision that can affect your future, so you must treat it as such.<\/p>\n

At the very beginning, you have to decide why it is you want to sell and what you are hoping to get out of the transaction. Do you want to retire? Is it time to pursue a new business opportunity? Goals have to be determined ahead of time, or else you won\u2019t be working towards anything important to you in the long term. Not having a longer-term vision that is beyond your current business will make you hesitate in the middle of the sale.<\/p>\n

Once you\u2019re clear on your objectives, all the prep work comes, i.e., gathering and organizing any financial statements, like tax returns, cash flow statements, and other financial documents. You\u2019ll need clear documentation of accounts and vendor information, product details, general procedural information, employee paperwork, etc. Now is the time to get a big-picture look at all your business assets and liabilities, and gathering all this information is a great way to collect this insight.<\/p>\n

If you own a brick-and-mortar business, you should also consider \u201ctidying\u201d its appearance, whether that\u2019s performing a massive clean-up or making minor but necessary repairs that could make your facility more presentable.<\/p>\n

You have to lay the groundwork, or else you may be quite displeased with your business sale.\u00a0Exit strategy planning<\/a>\u00a0can be a long process, but getting the results you\u2019re looking for is worth it. The problem many sellers run into is that they don\u2019t know what they don\u2019t, right? This leads us to our next point.<\/p>\n

2. Not Using a Broker:<\/h3>\n

Yes, it is possible to sell your business on your own. You may feel it is easy and you will save time and money, but anyone who has gone through a sale on their own soon realizes it is a full-time job. And that is time away from your business you can’t afford because it is losing value when your time is split elsewhere. Are you prepared to do that? Do you feel confident you have the time to market your business, target qualified buyers (confidentially), prepare all your financial documents, conduct negotiations, and everything else you are unaware of that will take time and money to do?<\/p>\n

The truth is that\u00a080%+ of businesses<\/a>\u00a0do not sell and most of these transactions are unsuccessful because of some pretty dire mistakes in the selling process. A business broker can help you navigate these issues as they arise; plus, they take the pressure off you to constantly work towards your transaction. This is a pretty complex process, and for now, you\u2019re still responsible for your company too. So, why not rely on the resources, skills, and time a business broker is willing to put in? Having their experience at your disposal will significantly improve your chances of a successful sale while minimizing risk and any potential liabilities.<\/p>\n

3. An Unrealistic Asking Price:<\/h3>\n

It\u2019s only natural that you\u2019ll develop a strong attachment toward the company you spent so much time building. We often must caution owners not to let these sentiments cloud their perception of their business and its worth. By doing so, you\u2019ll set a sale price that is so high it deters potential buyers. This is one large reason you need to hire a third party to conduct a business valuation<\/a> that will give you an accurate gauge of your business\u2019 worth. With this, you can set a reasonable selling price that stands up to the market, buyer expectations, and hopefully your own needs.<\/p>\n

On the flip side, some small business owners form a cynical perception of their company and its performance and are ready to part with it as soon as possible. Doing this can mean you\u2019re leaving money on the table because you\u2019re more apt to avoid minor fixes and updates that could result in more money. Or, you may gloss over assets or selling points you hadn\u2019t considered. In either case, it\u2019s important to seek a professional who will provide you with an objective opinion of the value of the business.<\/p>\n

While this is a good starting point to reference, this doesn\u2019t scratch the surface of all you need to consider. The\u00a0selling process\u00a0is incredibly overwhelming, and there\u2019s no shame in admitting you need help. In fact \u2014 it\u2019s the smart move to do so.<\/p>\n

If you are ready for a smooth, successful, and profitable sale, contact us today.<\/p>\n

Dedicated to your successful sale!<\/p>\n","protected":false},"excerpt":{"rendered":"

So many business owners don’t think their business is of value to anyone but themselves. They operate it with the hopes that a child or an employee wants to take it over and when that doesn’t happen, they just close the doors. When they end up reflecting on the business, they spent so many decades […]<\/p>\n","protected":false},"author":988,"featured_media":11699,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[17,2],"tags":[],"class_list":["post-11681","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","category-selling-a-business"],"acf":[],"yoast_head":"\nMust-Read: 3 Most Common Mistakes - Business Owners Make When Trying to Sell Their Own Business | Sunbelt of St. Louis<\/title>\n<meta name=\"description\" content=\"A business owner is in business to make a profit. 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