There are many things you need to do when planning to sell your business. There are also things to avoid and here are 5 things to avoid so you successfully sell your business.

1. Talking when you shouldn’t.
This may sound obvious but when you sell a business it’s more important to listen and ask questions than continually talk to try and “sell” the business. Often there is more information in hearing the type of questions being or not being asked and the follow up comments. If you are the only one talking that means there is little interest or other negative perceptions that need to be removed so the buyer is comfortable moving forward.

2. Failing to use common sense.
Selling a business rarely happens to the first buyer that comes along. There is a need to reveal information but only after the buyer provides enough information to show they are suitable buyers. This is one of the main reasons to use a broker to sell your business. They are trained and have the emotional detachment to ask appropriate questions to know not only if the buyer is truly serious but more important, qualified to be able to buy, finance, manage and run the business.
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The following is an article by Chrystal Jarvis of the Birmingham Business Journal about good news for Small Businesses looking for positive news about finance for their business.

The U.S. Small Business Administration is looking to offer more government-backed loans to commercial businesses.

The government agency has proposed increasing the size standards for 71 different types of businesses, two-thirds of them in retail trade sectors. The rest are in accommodations and food services and other services.

If adopted, more small businesses will become eligible for government loans and will have access to the SBA’s financial assistance, contracting and other programs.
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The question of whether to sell your business is a difficult one. It is, no doubt, the biggest financial transaction you’ll ever make. Yet every successful business owner must face it eventually.

There are several things to consider when selling your business:

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The baby boomer generation spans many years creating a unique situation in the business world. Aging boomers are looking toward retirement, while many younger boomers find they’re ready to be their own boss. For those younger boomers, and others looking to be a business owner, buying an existing business is a great option; especially as a means to grow your existing business.  

But be aware that buying a business is a timely process. Some buyers never find the right opportunity, while others spend too much time exploring too many options. 

• Consider a step-by-step approach to get you where you want to be owning your own business.
• Ask yourself some important questions – Why do I want to be an owner? What types of activities do I like? What lifestyle is important for me? You’ll also want to be sure to include your family as part of the assessment.

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It will likely be the biggest financial deal you’ll ever make, so it’s vitally important to be sure you are properly prepared when selling your business. Taking the proper steps to get your business ready for sale can significantly improve the likelihood of a successful sale. 

For many business owners, the prospect of selling the business after years of pouring every effort into growing the company can be emotional and difficult. That’s a major reason why it pays to structure a plan to prepare for the sale. Remember, it’s crucial to use the same care and patience that is used to grow and sustain a business. 
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Below are some provisions of the economic stimulus package that may be of interest to small businesses.

• Fifty Percent Bonus Depreciationis extended for expenditures made in 2009.
• Small Business Expensing Rules
  In the 2008 stimulus legislation, Congress increased the expensing provisions for small business to $250,000 for assets purchased in 2008, and phased out the limitation for businesses that purchased more than $800,000 in assets. This rule is extended for 2009. Businesses can deduct up to $250,000 of assets acquired during 2009 without having to depreciate them over multiple years.

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This is an article for business buyers. But it also helps the seller of a business understand what a buyer should look for when acquiring a business.

So you want to be your own boss. Consider the options – work as an independent contractor…start your own business…buy an existing company. Certainly there are pros and cons to each option. If you do a careful analysis, you’ll learn what many seasoned entrepreneurs have discovered…the risk-to-reward ratio is tipped in your favor when you purchase an existing business.

Admittedly, as an independent contractor, your risk is minimal. The up front investment and overhead costs are limited. However, without the ability to leverage the work of an employee base, the returns are limited by your own personal capacity.
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If you’re looking to sell a business, it’s critical to look at the value of the business. But a typical business really has two values. The “academic” value is the one determined by a professional business valuation. The other is the “true market” value. The academic value is arrived at with a formula based on the firms’ hard assets, cash flow, industry averages and multiples. The fair market value also takes those items into consideration, but then considers what buyers are really willing to pay.

For many small and mid-sized businesses hard assets like equipment, vehicles, land, buildings, and inventory may be limited. For some small businesses there may be no hard assets at all. Instead, their value is based on intangibles like employees, business processes, customer lists, location and business relationships.
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Sure you want a big payoff, but when it comes to selling your business, money should not be the only consideration. You don’t want just any buyer, you want the best buyer. With the market we’re now experiencing, many sellers are getting limited offers, but the buyers they choose aren’t always the ones offering the most money.

Would you consider a lower price for a buyer that fits the company’s culture? Would you consider an offer that’s a million dollars lower if it meant the difference between years of seller financing and cash at close?

It’s common for deal structures to include a variety of options which must be carefully considered and evaluated, long before you get to the negotiating table.
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As a Certified Business Broker and owner of a Sacramento, California office of Murphy Business and Financial, I am committed to excellence and an unwavering personal code of ethics. I am more than a business broker; I am your partner in success.

As a seasoned entrepreneur and business broker who has owned five businesses, I have the experience to help you with every aspect of buying or selling a business. I am also the published author of our books on business ownership. The titles are:
Successfully Buy Your Business: Expert Advice from a Business Broker.
Successfully Buy Your Franchise: Expert Advice from a Business Broker.
Successfully Start Your Business: Expert Advice from a Business Broker.
Successfully Sell Your Business: Expert Advice from a Business Broker.

I help small business owners that want to sell their business and those who want to buy a business.
When I work with buyers I can help them in one of two ways.
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