Owning and managing a small business is a lot of work, and that work never ends. Even as the company grows, you have to keep up with all the tasks that come with an expanding company. No matter how many people you hire, you’re the person who’s ultimately responsible for the company.
Eventually, most business owners will give in and sell the company, even if it’s successful. Large corporations and companies are just so much better able to handle the massive workload that comes with running a successful business.
Why small business owners just can’t sell!
Huffington Post ran a story on why small business owners just can’t sell their company’s products. Here we’ll look at the five reasons owners often can’t sell their own company.
1. There’s no preparation
For so many business owners, the thought that someone wants to pay them a fortune for their company gives them the incentive to get that company off their hands as quickly as possible. While this is great for the soon-to-be ex-owner, it may not be so good for the company itself.
The stock may plummet as the perceived value of the company decreases, and employees may end up leaving now that their company has “gone corporate.” In order to avoid this, the owner needs to prepare to make the transition as smooth as possible.
2. They sell just to sell
The idea that they don’t have to run their company anymore is so attractive to some overworked business owners that they sell just to get rid of their workload. They don’t think about their future, and they certainly don’t think about their reasons for selling.
They forget about their family’s opinions, and they certainly forget that selling their business will put them back at square one if they want to go back into the job market.
3. They lack organization
When a larger company wants to buy a small business, the first thing it will look at is the organization of the company. If the business owner is running everything, the organization is probably very limited, and even unclear.
The record-keeping may have been mostly neglected in most recent years, and there may be little to no cohesion among the various sales teams handling product promotion.
There are tax issues to consider before selling a company, and the financial history of the small business will be scrutinized with care.
4. They let things slide
As the date of the sale approaches, many owners simply stop caring about the performance of their company. After all, it’s going to be taken off their hands in a few days, weeks, or months, so there’s no need to invest as much blood, sweat, and tears into its operation.
This could cause the company to stop being as lucrative an investment for the company that wants to take it over, and may even lead to it backing out of the purchase.
5. They go with the first buyer
Screening a buyer is an important step for small business owners to undertake. Some companies and corporations will buy out a small company simply to dismantle it, and that could lead to the undoing of all of the hard work you’ve invested.
Make sure the buyer is actually interested in buying, and it’s not just your competition posing as a buyer. Make sure that your buyer has all of the correct documentation, and that the new owner’s going to treat your company like a valued investment.
Want some more tips on how to sell your business the smart way? Check out this site to find a host of resources on the topic!