With the stirrings of recovery in the economy, we see many business owners looking to sell. Many of them have committed at least one of the 7 Deadly Sins which has lowered their value in the eyes of perspective buyers. Don't fall into that trap! Here are the
seven worst temptations that can be detrimental to selling success:
Pride is excessive belief in one's own abilities. Do not try to sell a business on your own unless you are an expert in taxes, law and valuation.
Envy is the desire for others' traits, status, or abilities. Yes, in time with experience you might be able to obtain their expertise. Do you really want the selling of your company to be the beginning of your learning curve? Get help from experts to maximize your company's value.
Gluttony is an inordinate desire to consume. Not how much money you want, but the true value of your business, is always the best starting point.
Lust is an inordinate craving for pleasure, like retirement. Finish the work (like legal documents and financing issues), then will come the play.
Anger is spurning love and opting instead for fury. If you enter into longer-term agreements with your buyer, wrath can lead to litigation.
Greed is the blinding desire for material gain. Beware the risks in financing the buyer for a higher purchase price (on paper). Your objective should be to get cashed out as quickly as possible.
Sloth is the avoidance of work. Psychologically, once you decide to sell there is an inclination to slow down. As a result, earnings suffer and it lowers your business's value.
To see the flip side of this article, considering reading,
7 Ways to get More Value for Your Business.
