In parts one and two of this multi-part blog series, we went over some of the most common mistakes business owners make while selling their business. Avoiding these is important as you move through any business sale process, ensuring you don’t hit any pitfalls as you move forward.
At Utah Business Consultants, we’re here to help clients with a wide range of business sale and exit planning needs, including steering them clear of the errors they need to avoid in any such process. Today’s final entry in our series will go over a few other mistakes not to fall victim to as you’re proceeding with your sale.
Inability to Walk Away
For whatever reason, some sellers simply get so invested in a potential sale that they become emotionally tied up in the process. This is not an advantageous position to be in, as you cannot make clearheaded decisions if your emotions come into play.
The best way to avoid this pitfall is to set a firm deadline for yourself and stick with it, regardless of how much progress you think you’re making or how many of the hurdles you’ve cleared seem to be. While you should allow bits of wiggle room for the occasional setback, you don’t want to set yourself up for an extended sales process that drags on and on. Saying “no” is hard, but it’s important.
Waiting too Long
Another common mistake by business owners is waiting until the last minute to make their exit. They wait until business has begun dropping, for instance, or until they feel they’ve maxed out their earning potential. This is a mistake for a few reasons:
- It’s often harder to find a buyer when you’re in a weaker bargaining position
- The longer you wait, the more opportunity there is for something to go wrong with your business or the sale process itself
- You could miss out on the best possible offer if you wait too long
And to compound things, many business owners will wait too long to sell — and then will jump at the first offer that comes along. You want to make sure you’ve given yourself enough time to shop around for the best possible deal, not simply settle on the first one that’s presented itself.
While it’s completely natural to take the time to research and understand your business sale options, there comes a point at which you need to make a decision. Trying to hedge your bets by exploring too many options simultaneously can actually lead to decreased odds of success, as potential buyers will become frustrated and move on.
On the other hand, if you’re too quick to make a decision without proper consideration, you may regret that choice down the road. So how do you find the best balance between indecisiveness and rash decision-making? You talk to experts, like the professionals at Utah Business Consultants. By taking into account the desires of your business, your budget, your timeline for exiting and more, our team can help you make an informed choice that will lead you toward success.
For more on how to avoid common mistakes while selling your business, or to learn about any of our business sale or exit planning services, speak to the staff at Utah Business Consultants today.