When selling your business, it is always advised to engage the services of a business broker Rancho San Diego. This is because while you may have built your business from the ground up and have been running it successfully for years, you are probably not an expert at selling businesses. Yes, selling on your own will save you about 10% on commissions but you will lose a lot more in the end. Here are the main dangers of selling on your own.Â
Poor confidentiality management
Confidentiality management requires more than asking potential buyers to sign a non-disclosure agreement. An NDA only works if is foolproof. In addition to that, when selling on your own, everyone you reach out to will automatically associate you with the company you own.
These are all issues that can be avoided by working with a business broker Rancho San Diego. Business brokers have sold many businesses before. They know what needs to be included in an NDA for it to be foolproof. In addition to that, potential buyers will not automatically associate them with your business. Brokers also use marketing strategies that don’t mention the name of your business until it is the right time.
Selling a business while still running it is not an easy thing. In addition to focusing on the core operations of your business, you need to reach out to potential buyers, prescreen them, respond to every enquiry, and all the while keep the sale a secret. This is not an easy thing to do especially when considering you may also have to keep the sale a secret even to your employees. Juggling all these things will wear you out.
Working with a business broker, on the other hand, makes things easier. The broker focuses on the sale of your business while you focus on the core operations of your business. You will only be involved when major decisions have to be made such as making changes to the terms of the sale or accepting offers.
Poor buyer screening
Not every buyer that comes knocking is serious about buying your business. Some just want to snoop around while others don’t have the means to acquire your business. To avoid wasting time with the wrong buyers, you have to prescreen them. You have to perform a background check to ensure the buyer is serious about purchasing your business and have the financial means to acquire it. This is a lot of work and you may end up making mistakes because you don’t have the experience and resources needed to perform a thorough background check.
Emotions getting in the way
Last but not least, the sale of a business involves an emotional process. It is never easy to let go of something you have grown from the ground u. Emotions may cloud your judgement or cause you to have unrealistic expectations. To remain objective, you need the help of a business broker Rancho San Diego.