Common Sale of Business Mistakes

Common Reasons Why Businesses Don’t or Won't Sell

Attention business owners: There have been major changes in the business marketplace that can have a significant impact on your business value!

These changes have revealed that many businesses are running with a fatal flaw which cripples the ability to sell at expected valuations. For some, it means the business is actually worthless.

Even if you aren’t considering selling in the near future, these developments could have long term consequences that could affect your business.

To find out more about this situation and what you can do about it, we recommend you watch this short video and put in place the actions to fix the problem.

Click here to watch the video

Trying To Sell What No One Wants

It may just be the case that your business is in such a niche style that there is no call for it. You may have loved doing it but you might struggle to find someone else with the same enthusiasm. Test the market first just to get an idea. If the local area doesn't work then advertise further afield and try tempting someone who is looking for a complete change.

Don't Overprice the Business

A business won't sell if the asking price is to high. Do some research of your area to find out what the market value is for your type of business.

Not Enough Detailed information

A lot of business sellers try to sell without giving enough detailed information to prospective buyers. Most buyers won't buy a business that has little information to show that it's a worthwhile purchase.

Giving detailed information not only encourages a buyer to buy, but it also gives their accountant and financiers good figures to work with. The best way to evaluate this is to ask yourself “what would I want to know before buying a business”? then supply more than that.

The more details you can supply the greater your chances of a successful sale.

Limited Advertsising

Whether you are selling a business yourself or using a business broker, you will have to pay for advertising. There are many ways to get great exposure at very little cost? Using an online Selling Business site is a great way to get your business in front of many potential buyers.

You can’t sell something if people can't see it!

Lack of Effort and Preparation

Without being willing to talk to prospective buyers and being prepared with answers to any questions they may ask, you won't succeed in selling your business. Obviously not all buyers will buy your business BUT you should be ready to spend time talking to people who may appear to be wasting your time

Have information ready immediately to avoid losing their interest. But don't give it all up at once, only make certain information available. If negotiations continue and the prospective buyer seems serious then you can give up some more important details.

In the end it comes down to this; without preparation, effort and time on your part then your business will not sell.

Bending the Truth

A lot of sellers go to all the effort and expense of trying to sell their business only to have it all fall apart during the due diligence period.

They have bent the truth about their business and now the buyer no longer trusts what the seller says.

Don’t try and cover up or hide anything. If there are problems fix them, if you can’t or don’t want to make sure this is reflected in the asking price