Top 5 Mistakes To Avoid When Selling Your Business In India

You don’t have second chance to sell your business at good price. If you sell business in India, please make sure that you avoid these mistakes and you will sell your business quickly and at a good price.

What Are the Top 5 Common Business Mistakes To Avoid When Selling Your Business In India

1. Lack of preparation:

You might have seen examples of students getting failed or scoring less marks in exams and one of the top reasons is lack of preparation. Similarly, if you are selling your business in India, it needs serious preparation from the beginning. You need to plan your exit strategy and follow it diligently. We have observed that well planned exit strategy businesses are sold quickly and fetch maximum value.

2. Wrong Valuation:

When you developed your product or service, you took utmost care about determining its pricing. You had checked competition, production or service cost, margins and market before deciding it. If you over price or under-price your product, it is not accepted by market and it gets failed. Similarly you need to do your business valuation carefully with right business valuation methods. Do not hesitate to take help of professional who will value your business considering all aspects. Proper valuation will get you fair market price which is acceptable by buyer and seller without being forced.

3. Inadequate information:

Information and knowledge is king. If you do not have key information about your business or the market, chances are high that buyer will take benefit of your lack of knowledge. Keep all financial, market, competition and other information handy. It will save you from embarrassment while dealing with prospective buyers.

4. Reason For Sale:

In India or anywhere else, first question is, why you want to sell your business, asked by buyer. If you cannot answer this question properly, buyer will simply turn away from you. There could be plenty of reasons to sell business in India. You need to prepare your answer strategically to convince the prospective buyer. Reason for sale will also provide you your future course of actions after selling your business, which would be plus point.

5. Non-qualified buyers:

Non-qualified buyers or time passers will take up your valuable time, resources and energy. This leads to frustration and demotivating. This happens when you are trying to advertise to sell your business in India in untargeted channels. Free listing websites play major role in getting unqualified inquiries from time passers.

Wrapping Up

Posting advertisements to sell business is not hard but choosing the right place to advertise is a daunting process. Not that it’s difficult, but because mistakes can have detrimental and costly consequences. Advertising on every free online classified websites will just show desperation on your part. Instead, carefully chosen and well-executed advertising strategy will enable speedy sale of your business.

We want to emphasise on planning. Proper exit strategy or exit plan will help you to sell your business quickly and at the best price without any issues. 80% of business buying and selling deals gets failed due to all or one of above mistakes.