As business owners, we take a lot of risks. From purchasing assets when the market is down to trying new things that are out of our comfort zone.
Taking risks in business is natural. Starting your business was a risk as well. One risk you probably shouldn’t take is selling your business on your own. By selling your company on your own there is a large likelihood of lost money, time, and the worst risk of all is hurting your plans for retirement.
Undervaluing your business is not only a risk, but it is the most likely problem with selling your business on your own. Unless you get a professional valuation for your business, it is extremely likely your business will be priced inaccurately.
Pricing your business too low can cost hundreds of thousands of dollars, and you would be completely unaware. Pricing your business too high will also come with issues. You’ll have a harder time selling your overpriced company and will spend more money on marketing your business for sale.
Get professional help to sell your business rather than selling it on your own. Getting help selling your company will avoid the risk of undervaluing it. Knowing your business’s worth will help you when trying to market your business for sale.
Marketing your business on your own will cost more than it would if you were to hire a business broker. Business brokers already have a large number of connections and marketing channels to find an interested buyer for your company.
If you try to set up the same marketing channels and connections yourself, you will spend large sums of money marketing your company. Business brokers have developed their connections over many years. It is also important to remember, marketing your business does not mean you will sell it. Many interested buyers will contact you to buy your company, but only a few will actually be qualified.
As Business Brokers we work to make sure the time you take to meet with interested buyers is essential and effective. Interested buyers should also be qualified buyers. This is seldomly the case.
Since you do not have the experience of selling companies, you will probably speak with hundreds of interested buyers who are not qualified to purchase your company. This will waste a lot of time and energy. On top of that, you will still be paying to market your business this whole time.
We will work to find qualified buyers for you to meet with. In our experience, we can determine a large number of buyers that are not qualified to purchase your company. Having us handpick buyers from the pool will help you to sell your business effectively.
You may find negotiating the sale of your business to be extremely difficult. Most business owners do. As a business owner, you are emotionally connected to your company. Many do not realize the emotions of selling a business until the negotiation process.
When you negotiate the sale of your business, it can be hard to separate the emotions from the sale. Emotions can keep you from selling your business.
On top of that, if you don’t have a professional valuation or a business broker backing up the valuation of your company it is likely you will compromise on the price of your business. Negotiating the sale of your business it’s just one area of risk where are you could lose large amounts of money selling your business on your own.
Negotiating the sale of your business is one of the most difficult things to do on your own. This is one of the reasons you should not sell your business on your own. Within the process of selling your company, negotiating a final contract of sale is what business owners find to be the most difficult.
Trying to sell a business is a full-time job. We know selling a business takes a lot of time and investment because we do it daily. Since selling a business takes a large amount of time, your attention will be divided between selling your business on your own and running your business.
With your attention divided, you run the risk of allowing your business to suffer. If your business suffers, the value of your business will decline. If the value of your business is in decline you will have to lower your company’s listing price. This will also cost you large sums of money.
Being the owner of your business, it will be extremely difficult to keep the sale of your business confidential. The moment you meet with an interested buyer it will be easy for them to find out the name of your business.
When you hire a business broker, the interested buyer would have already signed a confidentiality agreement. This will help to keep your business and all invested parties safe during the sale of your company.
The reason it is such a large risk for people to find out you are selling your business is all of the people it will impact. From investors to your employees, people might panic. You could see an exodus of employees or customers that could lead to your company’s value declining before you are able to sell it. A lack of confidentiality is a large risk in selling your business on your own.
Sell your business with the help of a professional business broker. At Synergy Business Brokers we will help you to effectively sell your company for its full value. Make sure you do not risk selling your company on your own. Contact us today!
