Friday, 16 March 2012

Common mistake in selling a business

selling a business
The most crucial event that takes place in a business owner's life is selling their business. Lots of businessmen that have struggled to sell their businesses on their own way but they don’t get full success because they did many mistakes and these mistakes should be corrected before going to market. The below are the following common mistakes done by the businessmen when they are going to selling a business.

•    Hide information – Some of the seller think that hiding the negative information of the business from the buyer is an effective idea, but they are unfamiliar that that a buyer has an ability to uncover all the secrets of that business they are buying. Buyer will get all the information from the internet because they are very sophisticated.

•    Privacy agreements – Most of the businessmen do not want that their employees, customers, vendors and competitor to know that they are sell their business. However, many do not use privacy agreements and do not take precautions until it is too late.

•    Keeping Financial Records – Lots of business owner sell their business due to poor financial records and a buyer wants to look through all of them because these financial records will be used to negotiable upon the price.

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