Why Nearly 80% of Businesses Fail to Get Sold – And How to Beat the Odds

Did you know that nearly 80% of businesses never find a buyer?

It's a startling statistic that makes you wonder what goes wrong. Selling a business isn't just about putting up a "for sale" sign; it requires meticulous planning, understanding the market, and, more importantly, preparing your business to be as attractive as possible to potential buyers.?As an experienced serial entrepreneur and Exit Planning Consultant, I've seen firsthand the pitfalls many business owners fall into – and how to avoid them.

Let's examine the top five reasons businesses struggle to sell and consider how you can change the script to ensure your business isn't just another statistic.

You may also want to consider that most Australian business owners are Baby Boomers, and all indicators show that in the next little while, more businesses than ever will be hitting the market. It would be best to get in early before more businesses compete with you for an investor's attention.

It is essential to start planning your exit strategy while your business thrives. This gives you the leverage to negotiate a better price and attracts more buyers to pay a premium for a successful business.

Lack of Preparation

Imagine trying to sell a house with peeling paint and a leaky roof. The same principle applies to selling a business. A business that has yet to be spruced up for sale, with messy financial records and no clear operational procedures, will turn buyers away.?

People are buying your future profits, not your past profits. The more confident they are that their past success will be repeated in the future, the better your exit price will be. Begin exit planning well in advance. Streamline your operations, clean up your books, and ensure your business can run without you. This makes your business more attractive and can significantly increase its value.

It's important not to let emotional attachments cloud your judgment about the actual value of your business.

Get a professional valuation early on and understand what drives value in your industry. This will give you a realistic figure to work with and can guide you in improving your business's worth.

NOTE: I have an exceptionally accurate Business Valuation tool that will tell you what your business is worth today, what areas of your business add to the value, and what areas detract from it.?Just contact me if you want a complementary report on your business.

Inadequate Marketing

Selling a business differs from selling a second-hand bike; you can't just post it online and expect offers to roll in. A lack of targeted marketing means missing out on reaching the right buyers.

Utilise a professional who understands the market and has a network of potential buyers. Crafting the right message and reaching out to the right audience can make a difference. The proper professional can create a competitive bidding situation.

Ignoring the Importance of Confidentiality

If word gets out that your business is for sale, it can create uncertainty among employees, customers, and suppliers. This can devalue your business and scare away potential buyers. At a minimum, it can make a very stressful situation for you. Keep the sale process discreet until the right time. Work with professionals who understand the importance of confidentiality to ensure the stability of your business during the sale process.

Think of it as getting your business fit and healthy, ready for the race of its life. Whether you're looking to sell next year or a decade from now, early exit planning ensures that when the time comes, your business is in prime condition to attract the best buyers – and fetch the best price. A saleable business is a better business. It is more profitable, scalable, and less reliant on the owner.

Selling your business is one of the most significant financial transactions you'll ever make. Don't leave it to chance. I'm here to help you navigate the complexities of exit planning and get your business ready for sale.?

Let's chat about how we can prepare your business for a successful exit, secure your financial future, and leave a lasting legacy. ????