Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
CyberSchmooz
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide



Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

3 mistakes to avoid when selling your small business

 

Small business owners launch their companies without having a contingency plan. They are so excited to start a business that they do not think about the risks involved. At one point or the other, they have to sell the company that they worked so hard to get off the ground. Selling a small business is just as complicated as starting one. Every day, entrepreneurs make huge mistakes and lose a lot of money in the process. When you sell your own business, you have to be very careful. The transaction is complex and mistakes can end up costing you more in the long run. Stop what you are doing for a few moments and read about the most common errors made in the selling process.

 

1. Not taking the time to plan

Preparation automatically leads to success. When you formulate an adequate plan ahead of time, you are able to execute the project, reach your goals, and fulfill your vision. It takes from two to four years to sell a company, so you have to make a long-term strategic plan. Think about how much your company is worth now and whether that value will increase in future time. Equally important is to think about the financial aspects. Selling a company is basically a liquidity event, meaning that you can cash out some money. Make an investment plan and consider the tax ramifications. You will want to present a professional image. Update the records, keep a detailed business history and have the portfolio ready at all times. As you can see, a lot of preparation is required when it comes to selling a small business.

2. Making yourself indispensable

Being a small business owner is not easy. Yes, you have people to perform various tasks and keep the company going, but you also have responsibilities and it is necessary to live up to them. As a business owner, you have to prepare the business plan, decide on benefits for employees, handle complaints and requests, implement marketing strategies, and more. The world is on your shoulders. The enterprise should run smoothly without your help. Ensure that your team is capable to manage without you, at least for a little while. The more independent the small business is, the more valuable it will be in the eyes of the buyer. As for you, you can spend the time gained preparing to list the company for sale. Experts over at ExitAdviser recommend you not postpone the sale. Commit yourself to selling the small business.

3.  Asking too much or too little

Are you looking for a valuation that is three times the average earnings multiple for the industry? If the answer is yes, then you need to know that you are asking too much. Setting an unrealistic price tag on the enterprise is not a good move. You will deter potential buyers. Take into consideration the industry, companies similar to yours, the economy, and, last but not least, the marketplace. Pricing the small business too low is not advisable. What you need to understand is that you have the opportunity to make money and you should take advantage of it. If you set the price too low, you will not make any profit. Do your homework and do not rush things.  

Google      

Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2018, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.