Over the years we have had a variety of questions posed by business owners. We thought it would be a good idea to put some of the most common questions in one place for easy access. This blog series is a compilation of those common questions. This five part blog should provide a good starting point for most business owners.
Below is Part 5 to the Business Owners FAQ. The following are the other segments of the FAQ in the suggested order of reading:
- Part 1 – When Should I Sell My Business
- Part 2 – Potential Buyers
- Part 3 – True Market Value
- Part 4 – The Acquisition Offer
- Part 5 – Common Mistake and Conclusion
What is the most common mistake business owners make while they’re selling?
The most costly and common mistake sellers commonly make is in not getting either enough competition, or the right competition, into the process. Often there is such fear of confidentiality breach, and such discomfort with the whole process, that sellers cost themselves enormous lost value in pricing by mistakenly limiting talks to one or two buyers — and then often the wrong one or two. Competition pays off in a big way. It’s worth the time and effort. Remember, “One Buyer Is No Buyer”. Don’t fall prey to this costly and common mistake!
Selling a business is a blend of art, science and psychology. Handled effectively it will pay huge dividends. Handled incorrectly and it can cost you dearly. Business owners usually have only one opportunity to get it right, so make sure you commit the proper time and resources to succeed.
Study the elements of value. Build a strong, controlled process for the task. Put together an experienced team to assist you. This is a team sport so make sure you have a winning team in place. By having a strong, competent, experienced team, you will have the time to keep your eye on running your business at a very critical time.
This is your opportunity to “cash-in” on years of hard work and risk taking. This event can position you so that you never have to work again. Never having to work is a great place to be even if you are still working.
In case you missed them, you can go back to Part 1 (When Should I Sell My Business?), Part 2 (Potential Buyers), Part 3 (True Market Value), or Part 4 (The Acquisition Offer). Please feel free to contact us directly if you have any questions or if you are interested in exploring a possible sale of your business. You can also learn more by requested one of our publications. In particular, our book “The Practical Guide to Selling Your Business” and the article “Uni’s 12 Value Drivers to Increase Corporate Valuations” are very valuable to business owners interested in learning more about selling their business. We hope to hear from you soon.