10 Mistakes to Avoid When Selling Your Business
Follow these tips to maximize the success of your sale and preserve your peace of mind.
Most sellers don't expect the exit from their company to be easy, but many are surprised by how difficult it can be to sell their business for a good price in a reasonable timeframe, especially in the current economic environment. It's important, however, to not let frustration get in the way of maximizing your sale.
The majority of frustrations and challenges sellers experience could be avoided easily with a little information upfront about the pitfalls of selling a business in today's market. There are literally dozens of challenges to overcome in a business sale--but here are the 10 that could have the most significant impact on both your business sale and your peace of mind.

Insufficient Preparation
 Lack of preparation is by far the most common mistake that      small-business owners make. Just like you would spruce up your house      before hanging a "For Sale" sign in the front yard, it's      important to address several key aspects of your business before listing      it in the business-for-sale marketplace. Financial documentation,      sustainable profitability, lease issues, staffing problems and other      concerns will not only impact salability, but also the price your business      will command in the marketplace. Another thing to consider is that the      time to start preparing for your business sale is right now--most brokers      recommend owners start the preparation process at least two years before      the business is listed.
 

Overconfidence
 There's nothing wrong with being confident that you are going to successfully      sell your business at a good price--unless your confidence causes you to      neglect activities that are necessary to make your sale a reality. Far too      many sellers go into the selling process with the confidence that they      will get top dollar for their business simply because they believe that is      what it's worth. In the real world, valuation is based on quantifiable      criteria, not the owner's personal estimation of worth. To avoid this      mistake, get an objective third-party valuation, or visit online business-for-sale      websites to see comparable businesses for sale, early in the process. Once      you've identified an appropriate valuation for your business, address the      issues that could lead to increases in value.
Unwillingness to Leverage Professionals
 You're an expert at running your business--not selling it. Yet it's always      surprising how many sellers are averse to hiring a business broker to      facilitate the sale of their business. Would it be nice to save the      roughly 10 percent brokerage fee? Sure, but in most cases brokers are      capable of adding at least 10-12 percent to the sales price. Even though      there are certain circumstances in which a for-sale -by-owner approach      makes sense, most owners are better off hiring a broker to handle      important tasks like preparation, showing the business to potential      buyers, marketing and      negotiation. Likewise, don't hesitate to leverage the expertise of other      professionals (e.g. accountants, lawyers, financial consultants) when you      need them.
Taking a Hands-Off Approach
 Once you've hire