Avoid the Top Two Mistakes That Are Made with Businesses for Sale
Before you put your business up for sale, read about the common mistakes you should avoid. Many entrepreneurs lose money during the sale process, simply because they are ill prepared and in a hurry to sell. Do not become part of the statistics. Preparation is the key to the successful sale of any business, regardless of the size and industry in which it operates. Here are some of the mistakes to avoid:
1. Not Advertising the Business for Sale Until It Is Too Late
There is always a right and wrong time to sell a business. If you wait until your profits are down, then it is almost too late already. In order to sell at the right time, you need to think ahead. If you try to sell too fast while the business is still in its start-up phase, you will not have financials to support your claims. You cannot sell the idea of opportunity if you have yet to get the business off the ground. Likewise, if you wait for several years before putting the business up for sale, you may end up selling it when it is no longer at its peak. The average time to keep a retail store before selling it is around three to four years. However, do everything with the “for sale” in mind.
You thus need to keep record, ensure that a detailed history is available, and keep the sales portfolio up to date. You will be surprised how valuable your business truly is if you have developed an audit trail over a period of two to three years.
Set up the retail store for current and future success. You want the buyer to build on a solid foundation. As such, put the marketing vehicles in place, create the supplier list, and develop the customer lists. In this way, you already add substantial value to the business. This also applies to a guesthouse, restaurant, bar, tyre fitment centre, etc. You should not advertise the business for sale because you are desperate, but rather because you have made it successful and are ready to move onto the next venture.
2. Not Using the Right Broker to Help You Make the Best of the Business for Sale
If you advertise the business for sale in the classifieds, expect many browsers and just as many unqualified buyers. In addition, you risk having to deal with criminals. Rather find the right broker with an extensive database of interested and screened buyers. The broker will have a website, social media page, national clout, and a network of financers to ensure that your business is introduced to the right people. In addition, the broker will also help to value the business.
You need someone that uses the correct formula for the valuation process. You also need someone that understands the various laws pertaining to your business. To this end, you will appreciate our service offering. Regardless of whether the business for sale is in KwaZulu-Natal, Gauteng, or the Western Cape, we have the resources to ensure that your business receives the right amount of marketing exposure to screened and qualified buyers.