selling a business is a complex process and like most things that need to be done well
it often requires years of knowledge and experience
given that a business owner will only sell their business maybe once or twice in their life
it can be difficult for owners to fully understand and comprehend the entire sales process now in
this video i'll share five of the most common sale myths that can sabotage your business sale
so these are five of the most common things business owners believe
when selling their business
many business owners believe they know how to sell their business because well they've
been the main sales person in their business for many years however selling your business
is not like selling a product or a service it can be particularly hard for business owners to put
aside their emotional attachment and this can adversely affect buyer negotiations selling a
business can be a full-time job and the demands that that adds to the stress that an owner feels
trying to juggle both the sale and the running of his business throughout the selling process
clever business owners keep their businesses fully operational and they add the little touches that
would help them get the potential for a top of the market price furthermore confidentiality is lost
now that means you risk losing clients and employees and that's the very good will you
are trying to sell it's difficult to vet potential buyers without revealing your identity if you are
a business owner and you choose to deal directly with the buyers now this is where the services of
a professional business broker that'll be me can offer you valuable strategic advice and increase
your chance of selling your business for a higher price
asking price and sale price are often two very different figures not always but before you list
your business for sale if you hire a business broker they will explain that any advertised
selling price will be regarded by potential buyers as well a starting point for negotiations now many
business owners don't have a realistic idea of the value of their business now in some cases
they undervalue and in other cases they overvalue if you go into the sales process with unrealistic
price and terms expectations you may expect to receive little or no interest in your
business therefore it is important you get a full business appraisal before you go to market with
your business now an experienced business broker me again will be able to complete one for you
businesses put up for sale through brokers generally have a much higher listing
to closing rate compared to those listed directly by business owners
now too often business owners assume that as long as their business is performing well then it's
ready to sell with no other preparation needed now this is certainly not true especially if you want
to maximize your selling price the sales process will involve a rigorous examination of your
business and its track records successful business owners often spend months positioning their
business compiling financial records and putting systemized processes in place to ensure that
their company is ready for sale and they get top dollar at sale time
while some businesses do sell quite fast it can sometimes take a period of months to attract
the right buyer and close the sale at the right price a common rule of thumb is that it can take
somewhere between four to eight months to sell a business now this may seem like a long time
but the simple truth of the matter is that it takes time to find the right buyer who will
pay you an appropriate market price and to whom you will be comfortable handing over the reins
of your business now most business owners can only deal with one buyer at a time but
a business broker me again can expose a business to numerous potential buyers and that increases
the chances for multiple offers and that gives you the best price in the shortest time frame
the reality is that most buyers will require some form
of finance to purchase your business even for the most experienced business owners and purchasers
they will look to leverage the use of funding from elsewhere as this makes the process of
purchasing more efficient for them remember it's in your best interest to help them
through this process as this may be the difference between them completing the purchase
or not accounts showing little profit well they are great from a tax point of view but not good
when it comes to determining the value of the business you have built so have your accountant
recast your financials to reflect adjustments for what you take out of the business in terms
of i don't know salaries health car boat travel any other kind of expenses like that
you will want to show the purchaser's bank your business in the most favorable light possible
as this gives your purchaser every chance of successfully funding the purchase of your business
now while selling a business may not be easy with the right expectations the right preparation and
certainly the right assistance you can achieve the result that you've worked for and you deserve hey
thanks for watching if you liked the video and would like to leave me a thumbs up a comment or
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