Issa Asad Shares 3 Mistakes When Selling Your Business
When setting up a profitable business, the thought of putting your business up for sale is miles away from your mind. Building a mega successful business needs more than just planning. It includes selling your idea in a manner that clearly portrays the main product the business has to offer to the target market,choosing potential investors carefully, marketing strategies and many more.
Founders don’t expect to exit from a company that has taken a lot from them in terms of resources and energy invested in the business. But exiting from the company is not that easy; it can be difficult considering numerous facts. When you put your business up for sale you must be careful about the potential acquirer of your business.
“Buyers of a business tend to do their homework thoroughly before making a critical decision, they find a way to review every part of your business,” exclaimed Issa Asad Florida businessman since 1996. Mr. Asad is the CEO of Quadrant Holdings and Q Link Wireless. “But a great outlook of the business always outsmarts the odds against you.”
Now you have reached a decision and you want to sell your business. Potential buyers ought to have a series of questions that require answering before matching ahead to make the purchase, questions like;
a) Do you have trademark protection for your ideas, processes and products?
b) What type of technology is used and are your software licenses updated?
c) Do you have customers who pay late?
d) Does your company need a license to operate?
Adding to the questionnaire above, they will try to make sure if you play a key role in the success of the business. This is done by finding out if the business is dependent on you, meaning if you walk away the business would incur losses. Its more of a planned strategy that the buyer carries out in order to come with well thought plan at the negotiating table. These are usually traps used to mainly persuade you to sell on a cheaper rate. Issa Asad shares 3 mistakes when selling your business:
1. Rescheduling Meetings
Scheduling an important meeting involves a lot of consultations to determine whether the concerned parties have an open schedule.You should never cancel on a potential buyer,because it sends mixed signals. The buyer takes this action seriously and may start to investigate to find out why you had to cancel, even becoming suspicious of the fact that the business is depended on you so much that you have to available. You must avoid this trait fast, because anybody can suspect something is not right.
2. No Clear Vision of Your Business
Every business always has a vision and goals to reach, and the buyer tends to ask about the vision of the company. Anytime,any place when asked about your business’s vision you must be able to explain it thoroughly and precisely. Always know the goals the business has to achieve and future goals. Answer the questions confidently and this will affirm the buyers you know what you are talking about.
3. Not Knowing Your Customer Relationships
A potential buyer will want to know why customers do business with you If he probes around finds out it is what your customers like doing business with you because of the benefits of the product and services offered by the company then that’s a plus on your side. Always make sure the dealings between your business and customers is not based on your personality or they like you personally then that will not look good in buyer’s eyes. Always keep your relationship with customers professional.
