The top 10 selling mistakes

1. Not knowing what the Business should sell for:

Although the marketplace ultimately determines the final price, an owner needs to know what the approximate price his or her business is prior to placing the business on the market. Before making the decision to sell, owners should work with someone qualified to place a price on their company.

2. Not preparing the Business for Sale:

Prior to exposing a business to the marketplace, preparation is necessary. Anything that a potential purchaser might want to see should be up-to-date, accurate and available for review. Likewise, financial and legal affairs should be current. Being prepared helps to maintain the momentum of the deal, places the business in a favorable light, and brings confidence in the business.

3. Not being able to see the business through the eyes of the buyer:

Although it is tempting to look at one's own business in only the most favorable light, it is very important to recognize the deficencies of the business, and address them, in order to alleviate any buyer concerns. In fact, it is suggested that problem areas should be brought up in the very beginning of the selling process, along with possible solutions.

4. Not really knowing the buyer:

The better you know the buyer, the smoother the transaction. By knowing the buyers, their motives, their interests, and their backgrounds, the better equipped a seller is to make informed decisions about whether they are the right people to operate the business.

5. Trying to sell the company to a buyer who doesn't want to buy:

There are usually many more potential buyers than there are businesses for sale. The question is--how serious are they? Wasting time on those who are not serious about purchasing a business takes away valuable time from those buyers who really want to buy.

6. Being your own worst enemy:

Many business owners feel that no one knows their business like they do. They think they can do a deal themselves, without any help. As the old saying goes: "The attorney who represents himself has a fool for a client." The same could be said for the business owner who thinks he can sell his or her own business. Not using outside advisors, such as a professional business broker, is a serious mistake.

7. Not understanding the structure of the deal:

The real crux of the deal is how it is structured. Consider the negotiating axiom "You can name the price if I can name the terms." The terms and conditions are important. A seller may be ecstatic about price only to find that the devil is in the details.

8. Not being able to walk away from the deal:

Too many sellers get so involved in putting the deal together that they don't see the big picture. Since they have invested a lot of time and effort, and probably expenses, it's often difficult for them to see if the deal isn't a good one. If the deal isn't right, and can't be fixed, there is no other choice than to walk away. It's much better not to do a deal than to do a bad one.

9. Waiting too long to sell:

Too many owners wait until the last minute to decide to sell their business. They wait until business is down, or they are completely burned out, or their partnership has soured completely. The time to sell is BEFORE emergencies happen-when the business is still good. The old adage is: a business owner should think about and plan the eventual sale after it is purchased.

10. Changing your mind:

If there is even a hint of a doubt about selling the business, don't begin the process. Seller's remorse can arise from many things- realizing that you will now have nothing to do every day, an acquaintance saying the price is too low, etc. If it is a good deal from the beginning, don't let outsiders or self-doubt influence the sale.