6 Characteristics of Unsuccessful Sellers

Sep 6, 2024Uncategorized

I believe every business can sell, but not every business owner can sell.

Let me clarify. Just because a business can be sold doesn’t mean the proceeds will fund your dream retirement, allow you to buy that vacation home in Florida, cover college for your great-great-grandchildren, or secure your country club membership. How successful a sale is depends largely on the business owner’s mindset, decisions, and expectations.

6 Characteristics of Unsuccessful Sellers

Here’s what I often see holding business owners back from closing a deal, or getting a price they’re happy with:

1. Indecision

Many business owners struggle with decision-making. They second-guess every move and overanalyze every offer. This indecisiveness not only frustrates potential buyers but also prolongs the process, often leading to missed opportunities.

2. Unrealistic Expectations

Some owners think their business is worth far more than the market dictates. Whether it’s based on emotional attachment, or a misunderstanding of financials, inflated expectations can scare off serious buyers and leave a business unsold.

3. Greed

At times, greed takes over. Owners hold out for higher offers, demanding more even when a reasonable deal is on the table. Or even worse – try to raise the price once they receive and accept an offer.  This always backfires.

4. No Vision for the Future

Some owners can’t envision life beyond the sale of their business. Without a clear picture of what comes next, they become paralyzed. This lack of vision causes hesitation, making it nearly impossible to navigate the complexities of a sale.

5. Letting Circumstances Control You

Rather than taking charge, some owners allow external circumstances to dictate their decisions. They wait for the perfect offer, the perfect time, or for market conditions to improve, instead of being proactive and strategic.  Don’t wait until you turn 65 – just to get on Medicare.

6. Unwillingness to Listen

Successful business owners are often very good at running their companies, but that doesn’t always translate to being good at selling them. When an owner refuses to listen to experienced advisors—whether they be brokers, financial planners, accountants, or appraisers—they often miss key advice that could have led to a smooth, profitable sale.

Selling a business is about more than just having something valuable to sell. When an owner approaches the process with decisiveness, vision, and realistic expectations, the sale can be not just possible but rewarding.

Are you the kind of business owner who can sell? What you don’t know can be costly – we help eradicate uncertainty.  You are not alone.  We can help.