Until maybe just a few years ago, selling your business was considered a taboo. Traditions defined that the son must follow the footsteps of his father, and join the family business. But with changing trends in the mentality of people, the business environment, and the constant need to create something bigger and better, the stigma is vanishing quickly, and selling business is no longer looked down upon.
Being new to the idea of business selling, sellers often make some basic mistakes, forcing them to sell the business at a lot less than what it is worth, or in worst cases, shut it down without getting any return on investment. Traditionally sellers will try with their own contacts (limited reach and confidentiality issues) and talk to people that they want to sell their business. This often provides limited reach and also it creates situation where the word soon gets out that business is for sale, and it can greatly decrease employee morale, and might provide advantages to competitors to bash the seller company, and gravely affects the future scope too.
Other factors: Sellers generally wait too long to SELL, timing of selling is equally important. Sellers also generally lack any proper exit strategy; good paper work and clean financials. All of these are mistakes that can affect business selling. With everything turning up on the Internet, it wasn’t long before selling business made its way to the there, and this is where buying and selling businesses found a new approach. It also helps overcome the drawbacks of manual selling. Internet provides what print advertisement (newspaper or journals) or word of mouth cannot provide: the secrecy/privacy, the reach, the specific target audience, and all of it at low cost.