Selling A Small Business - How to avoid the pitfalls

A very useful article from The Independent, using real life examples of what to look out for when trying to sell your small business...

"It's the stuff of dreams. You start your own business. Build it up over several years. Sell it for millions and head off into the sunset for a life of fun and fast cars. But while selling a business can put dreams within reach, without the right preparation and planning, the selling process itself can easily turn into a nightmare.

"Perhaps not the primary reason why many entrepreneurs start businesses, cashing it in further down the line is certainly an attractive secondary reason, and one that often becomes more attractive as time progresses. A new start-up has little of value to sell, anyway. But after a few years of successful growth and profitability, it becomes a more likely prospect for a sale. The commonest reasons for selling can be split between personal aspirations and the business's competitive environment.

At a personal level, once the challenges of starting the business, proving it can succeed and establishing its position have been achieved, management commitment and drive may decline. The focus for some entrepreneurs is on creating a new business and making it succeed, not necessarily in spending the next 10 years running it. Equally, age may be a factor. The decision to sell could be based on realising some of the personal investment - in time and effort, as well as money - that has been put into the company to make it a success, while the owner is young enough to enjoy the rewards."

Read the full story here.