Do you have a small business for sale in Australia? Selling a business privately is easy if you’re prepared for the process. It’s even easier if you hire help to facilitate the steps.
How do you ensure you get the better end of the deal? Well, for starters, there are a few pitfalls you need to avoid off the bat. Even the most seasoned sellers make mistakes. Revel in the comfort that you’re in good company.
Should you wait or jump the gun? Should you set the price high, will you accept lowball offers? How do you curb your expectations so you’re not disappointed when the deal closes? These questions keep sellers of a small business for sale up at night. Keep a clear head and watch out for these five pitfalls, so you don’t end up selling your business at a bargain.
Pitfall # 1: Doing it all on your own
Don’t assume you can pull all the strings, even if you’re confident you know well enough to do so. Note that even the larger companies hire a team of specialists to do the legwork. If cost is a concern, then only hire consultants who’ll advise you on big decisions.
Depending on the size of the business you’re selling, consider hiring specific professionals to divide the workload. Hiring talented individuals should be first on your to-do list, right after you decide to find a buyer for your small business for sale.
Pitfall # 2: Having the wrong timing
Your advisers help you determine the best time to sell, which is dependent on market conditions and the nature of your business. You need people to calm you down, though. Even if the market is up, your business may not benefit from this trend. On the flipside, there’s a chance you’ll miss a good opportunity if you wait too long to sell.
Consultants can point out your blind spots before you make a move when it comes to your small business for sale. Maybe you should improve the business’s financial situation, or wait a few more weeks until the market ripens.
Timing is crucial when selling a business. It’s vital you have experts who can back you up.
Pitfall # 3: Erroneous Expectations
Rookie business sellers should be cautious of setting high expectations from deals. It messes the process, and good opportunities and offers pass by unnoticed. Many consider their business valued way higher than the market price, disappointed when they’re offered low-ball prices, or worse, ignored by prospects.
Here’s one standard you can use to benchmark your selling price: find the median selling price of similar small businesses for sale in your area. You’ll know the high and low limits. You can also set a price that can compete. Advisers also offer great insight on this end.
Pitfall # 4: Failing to plan ahead and setting a timeline
If selling the business was your exit goal from the start, then a strategy should already be in place. In case there’s plenty of catching up involved, then the minimum timeline for the planning is six months. This is a good timeframe if you have a small business for sale.
You need comprehensive, documented financials to present to prospects. These take time to develop. A longer lead time also gives you more headway, building the business until it’s ripe for the picking.
Pitfall # 5: Selling to the wrong buyer
Should you sell to the highest bidder? If money is the end goal (it usually is), then yes. But what if the buyer intends to acquire your business so it eliminates one of the competitors? What’s your motivation for starting and selling the business? Will you allow your novel service hijacked and killed by a competitor?
If the promise of continuity is music to your ears, then you should meet buyers head-on, ask what they would do after the sale. You could be offering something revolutionary, and buyers might toss it aside as detrimental to their business. Be wise when choosing buyers for your small business for sale. Ensure you’re on the same page before you commit.
Have a Small Business for Sale?
Selling a business is not at all difficult if you approach the task the smart way. You have to make the most out of the deal. Think the process through before you sell, and seek the counsel of experts. The investment you make pays off with bigger profits, and a deal that favours your interests in the end.
Zerocommission.com.au is here to help you with your small business for sale. For a nominal and one-time fee of $299, we’ll list your business for sale on the top websites in Australia. Visit our site to learn more about selling a business privately.
We put together a list of other blog posts we’re certain will help you close the deal:
- 5 ideas to boost your small business marketing
- How to use social media to sell your business in Australia
- Learn how to write property description that will attract buyers
- Top reasons to sell without an agent
- 4 common mistakes to avoid when selling a business