In recent years, the number of businesses being sold annually has steadily increased.

If you want to make sure your business sells and you get the profit you deserve, you need to go about selling your business the right way. The first step to selling your business the right way is to avoid the easy mistakes often made by business sellers.

Read on to learn about the 8 most common mistakes to avoid when selling your business.

1. Failing to Prepare Your Business

When you’re thinking about how to sell your business, think about selling a home. What’s the first step?

Often, it’s to make the home look nice and prepare it for buyers’ eyes. The same goes for your business. Only, for your business, there’s much more preparation to do.

Like a home, you want it to be visually appealing: clean, tidy, and in good repair. People are more likely to buy a business that looks nice. But you also want to show off how well your business works, including its profitability, reviews, and staff.

Your business should fit buyer expectations, and you should make it easy for buyers to see your business fulfilling their dreams.

Preparing your business will also help you get a better price because it will be in better condition and worth more. You can start preparing as early as over a year in advance.

2. Not Taking Advantage of Professionals

Hiring a business broker with business buying and selling services is one of the best things you can do for your business. This is because selling and managing a business are ultimately very different tasks. Just because you’re an expert at one doesn’t mean you’ll be an expert at the other.

A broker is a professional seller, and using professionals when selling your business will guarantee that you get a better rate and sell faster than you would on your own.

Unfortunately, many businesses don’t go for what they are worth because owners don’t want to invest in a broker. In reality, brokers can often increase your profits more than the amount you pay for their services.

3. Twisting the Truth

It’s understandable if you want to sell your business fast and get as much money out of it as you can, but this should never come at the cost of the truth.

Misrepresenting your company isn’t only unjust and possibly illegal, but it will push buyers away and make it harder to sell if anyone finds out. You may think rounding up one small number isn’t a big deal, but before you know it, you’ll start twisting the truth everywhere.

Always be forthright or let your broker guide your discussions.

4. Not Asking for the Right Price

To get the most value for your business, you have to start by choosing the right price.

Determining how to price your business can be the hardest decision of all. It’s easy to price your business too high when your business is one you founded or invested a lot of time or money into. Aiming for too high of a price, though, can result in no one buying.

It’s also easy for owners to rip themselves off by rushing the sale and pricing their business too low.

Instead, always consider the quality of your business, industry, economy, and what similar businesses have sold for. This is another example of where a broker’s expertise can help.

5. Waiting Too Long to Sell

Waiting to sell your business for the perfect opportunity may actually result in you missing your best chance if you wait too long. Often, waiting too long is a sign of too high a price. At the same time, you don’t want to sell too early if you can get a better offer.

It takes between 6 to 11 months to get a business off of the market on average, but your broker can help you evaluate when the right time to make a deal is.

6. Not Participating in Marketing Your Business

Even if you hire an individual or team to help you market and sell your business, you should be as involved in the process as possible. Marketing helps get your business in front of more potential buyers, increasing your chance of a sale.

You should be involved in this process because you know your business better than anyone else. You understand the pros, cons, and motivations behind owning a business like yours – because you have.

7. Not Pre-Qualifying Buyers

It’s essential to qualify buyers early on. Doing so will save you time that could be wasted on those who aren’t truly interested in your business, aren’t qualified in the first place, or don’t make a good fit. Saved time is saved money.

You don’t have to worry about scaring off prospects by qualifying them early on because the right prospects will stick around and show interest.

It’s also important to pre-qualify buyers so that you don’t give your company’s private or sensitive information to people that can’t be trusted with it.

8. Forgetting to Discuss the Transition

Another super common mistake business owners make when selling is not discussing the process of transitioning the business in advance.

When you sell your company, your job isn’t immediately over. You still need to decide how the business will transition to your successor. This is especially the case if you want your business to live a long, healthy life once you’re gone.

Whether you want to be heavily involved or not, it needs to be decided with the buyer in advance of making the sale. Otherwise, your sale may end up taking longer than you’d like.

Start Selling Your Business Today

Now that you know the common mistakes made by business sellers, you can start safely selling your business. Be sure to prepare in advance, stay honest and involved, think carefully about the price, pre-qualify buyers, and have all of the necessary agreements settled on. Always rely on professionals because a business broker can help you will all of that and more while getting you the best price.

Interested in selling your business? Check out our services for business sellers today.