Mar 16, 2016

Posted by in Business services | Comments Off on 3 Mistakes To Avoid When Selling Your Business In San Jose, CA

3 Mistakes To Avoid When Selling Your Business In San Jose, CA

3 Mistakes To Avoid When Selling Your Business In San Jose, CA

Selling a home on your own can be a challenge. Selling your business in San Jose, CA without the assistance of a business broker can be not only difficult, but it can also result in several very costly mistakes.

This is not just true for more established businesses with significant assets and property, but it is also true for startup businesses and entrepreneurship as well. Having a professional involved at the earliest point in selling your business will help you to not only plan for the sale but also to avoid the following common mistakes made by business owners trying to manage a sale on their own or with an inexperienced broker or sales agent.

Not Knowing the Market

Getting the business in order is a key factor in preparing for a sale. It is also important for valuation, a critical aspect of selling your business. Having a business valuated by a professional broker will allow you to have an objective, not subjective, idea about pricing.
Not only will the broker be able to complete the valuation, but he or she will also have a good understanding of what similar businesses are bringing on the market. This information will be essential in determining if the timing is right for the sale or if it would be better to wait for a more favorable market.

Understanding the Protection Available for Sellers

When you are selling your business, you have to provide potential buyers with information to allow them to make an informed decision. This means providing them with access to the processes used, your customer lists and other proprietary information.

Unless you are using a business brokerage to ensure that the potential buyers are vetted and have signed a Non-Disclosure Agreement about the information they are viewing you can be putting your business at risk. This may be a time when competitors could gain inside information to your company, and then use that to improve their businesses, driving the value of your products or services down.

Not Setting a Reasonable Price

It is very hard to separate the emotional value of a business from the actual market price. When selling your business, it is very easy to overvalue what the company is worth, which leads to unrealistic pricing.

Placing any business on the market outside of a reasonable price is a very big mistake. Once buyers see the business is overvalued, it can be impossible to get back on track to selling your business without taking a below market offer.

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