To help you think about getting it right from the start, here is a list of the ten most common mistakes we see sellers making:

1. No preparation
   Unbelievably, many businesses come to the market without a single idea of what is involved in the sales process and what they want to get out of the sale. It is vital that you understand these aspects and have a firm plan for what you would like to achieve. If you are poorly prepared, it will show, frustrate buyers and waste everybody’s time. The end result is NO SALE. Do not underestimate the amount of time and effort it will take to get a positive result.
   
   
2. Wrong price
   This is without doubt the main reason businesses don't sell. See for yourself. Look at the business for sale listings in the Financial Times or Sunday Times. If your price is too high, buyers don't take you seriously and won't bother to investigate further. Most sellers don't know the value of their business. Ask a broker, get a valuation. Ultimately a business is worth whatever a willing buyer will pay a willing seller following a competitive biding process. Having a firm idea of what you would like to achieve is ideal but keep it within reason. Wanting a million pounds because it sounds a nice round number won’t get you very far if you can't substantiate it.
   
   
3. Inadequate financial records & information
   Private businesses are set up to minimize tax, not show maximum profits. However, profit is one of the principal yardsticks of valuation. Low Profits = Low Valuation. If there is a good reason for low profitability and you can demonstrate solid results, make sure you document this. Nothing kills a deal quicker than failure to produce accurate, up-to-date, financial information or not answering queries quickly and efficiently.
   
   
4. Why do you want to sell?
   This will be one of the first questions a buyer asks you. Give some serious thought to why you want to sell. Common reasons include retirement, health, capitalisation or a career change. If the buyer isn’t comfortable with your reason they will simply walk away. If you have not made a firm decision to sell, whatever your motivation - don't. Wait until you’re sure it’s what you want to do and have a firm idea of what you want to achieve.
   
   
5. Non-qualified prospects
   Beware the tyre kickers, bargain hunters and general time wasters. Don't be afraid to ask for financial information or do background, credit and company checks. A serious buyer won’t mind. Make sure the buyer has the means and motivation to make a purchase. Use a quality business broker who will be able to check this thoroughly for you as part of their service. Be WARNED, you can waste significant amounts of time and money getting distracted by the wrong prospects.
   
   
6. The right buyer
   Usually the best deals arise when a buyer has a real motivation to buy - such as: when they will be gaining skilled staff, a proprietary product, a new geographic location / sales territory or lucrative contracts. These strategic buyers are driven by more than just profitability, which usually means they can offer better value for the business.
   
   
7. Demanding an all cash deal
   Some buyers are naturally suspicious of sellers who demand total cash settlement. What is being hidden? How much faith does the Vendor have in his business? Buyers may pay a substantial premium for an element of seller finance. Keep an open mind and you might get a better deal.
   
   
8. Trying to sell yourself
   Selling a business is a complex and time-consuming process. It is very easy to underestimate the process and think you can do it all. You wouldn’t be the first or last to take your eye off the ball while trying to sell, letting your business suffer – weakening your sales proposition.

   A buyer will automatically assume a position of advantage if they see you have chosen not to take professional help, especially if they equip themselves with an army of experts. Beware. Using a broker means that you will benefit from an experienced professional who understands what it takes to make a deal happen – controlling the process from start to completion. Click here for some tips on how to choose a broker.

   Not convinced? One of the best reasons to use a broker is to act as a buffer between you and the purchaser. There will be times when you’ll want to adopt a tough negotiating position - a broker makes this possible without antagonising the buyer. Remember, you might have to work with a new owner during a handover.
   

9. Over negotiating
   Many a deal has turned sour because one side feels cheated. You may have to work with the new owner for a period post sale… A skilful negotiator will work toward everyone felling happy with the outcome.
   
   
10. Timing
    The best time to sell your business is when you don't have to. Sell when your turnover and profits are at, or near, their best. It can be hard to justify a great price and do a deal when your turnover and profitability are in decline. Plan your sale in advance make sure all the right elements are in place, especially tax advice. Being well prepared can really make the world of difference in terms of the money going into your pocket.

    There is also a definite timescale to closing a deal. Buyers can quickly go off the boil and move on if they feel they are not making progress or not getting accurate information efficiently. Using a good broker should address this problem.