FAQ - Selling a Business

Frequently Asked Questions and Answers

What are the key mistakes sellers make when selling their business?

• Not properly preparing the business for sale.

If you were selling a house or a car that a buyer could inspect you would clean it or paint it or generally prepare it for inspection. A business is the same. You are selling a forward stream of earnings that are invisible. To be successful you need to convey to the buyer that they will and can receive those future earnings.

• Not preparing a “selling pamphlet”.

Running the smallest business requires many pieces of information that the owner keeps in their head and takes for granted. You need to present this information to prospective purchasers in a manner that allows them to absorb it. Telling them the information in conversation guarantees they will forget ½ or more of it. If you want a positive decision than you should provide them with the information in manner they can absorb it at their own speed. Preparing a Selling pamphlet is the single most critical act you can do to successfully sell your business and get the best possible price.

• Selling for the wrong reasons.

Many people sell because they are tired and/or can’t seem to build the business. There are many business strategies available to you even if you don’t have any cash. Hire someone like us to consult with not only about the sale but what options might be available to you. You would be surprised how inexpensive it is. Think in terms of 10 hours of consulting to review and discuss your options including selling.

• Not  preparing a game plan.

Too often people decide they want to sell and maybe place an ad in the newspaper or start spreading the news word of mouth. A game plan would involve planning out all details of your actions to sell your business. We have a great deal of information available on the website additionally you should consider our audio seminar. You will find it immensely helpful and is likely to save you thousands.

• Not educating themselves to the different type of buyers.

Understand, there are different buyer profiles. There is an investor buying a business, there is a person buying the business who intends to work the business. There is the competitor buying the business. Each of these buyer profiles will pay a different price because their ability to have return is different. When you understand the differences you also know what type of buyer will pay the most for your business and how to position yourself to sell your business to them.

• Not properly pricing their business:

I often look at small business that obtain an evaluation of their business and it is entirely unrealistic. You need to ask yourself “ would you buy the business for this price”? If the answer is NO. You need to re-look at your evaluation.

• Not structuring the sale properly:

This is where sellers leave thousands and thousands of dollars on the table. This is much too complicated a subject to try to describe. However, you are best served finding someone like us to discuss your sale structure before you commit to it.

Selling your business is very complicated no matter its size. We act as consultants:

• to assist and advise you with all aspects of offering the business for sale
• valuation
  
• preparation of business for sale
• exploring other options beside selling your business and structuring the sale.

You will find that the timeliness of our advice will save you an amount that is significantly greater than the fee you are paying us. For more information about our consulting service go to Link

If money is an issue for you we have an audio seminar that you will find very advanced and sophisticated.

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