Common mistakes to avoid while you sell your internet business
After entrepreneurs make the decision to sell a website, one of the biggest mistakes a website business owner can make is not hiring a professional internet business broker. Even if you have experience selling an internet business, an experienced ecommerce business broker usually has a buyer database with thousands of registered buyers that are actively looking to buy an internet business. In addition, there is a lot of work involved with selling an internet business and without an internet business broker on your team, you're more likely to make a mistake in the lengthy process of getting a deal closed from start to finish. Working with an ecommerce business broker will allow you to focus on keeping your business operating at maximum capacity while your internet business broker handles all aspects of the sale process. Finally, an internet business broker can help provide an instant level of credibility to buyers that might not otherwise be achieved without professional representation, which often helps sellers maximize the total purchase price during the process to sell a website. Another common mistake that internet business owners make during the sale process is cutting back on daily operations work or advertising efforts. This is a huge mistake that can cost an internet business owner thousands since most buyers primarily base their offers off of current financial performance. In my experience as an internet business broker, I always instruct my clients to continue operating the business as if they had no plans to sell to ensure profitability remains consistent until we actually get the deal finalized. Cutting back on daily operations work can quickly turn a healthy business into a distressed business with a huge drop off in financial performance.
Listing your internet business at the wrong price is also a serious mistake that inexperienced sellers can make, but this can be avoiding by working a professional internet business broker. Listing price will always control the speed of any transaction and the market plays a huge role in deciding which fundamental valuation techniques will be received well within the community of active buyers. Since financing is difficult to obtain for internet business transactions, valuations have to be reasonably priced to be competitive among comparable internet business listings.
Preparing a clean and organized due diligence package is one of the most important aspects of getting your internet business sold since any offer submitted by a buyer will be primarily based off of the financials presented in the company prospectus. While it may sound simple, nothing derails a deal faster than inaccurate information that comes up during the buyer's due diligence phase. Lastly, it's important to be flexible throughout the process when working with an ecommerce business broker, especially since most buyers don't want to buy a business from a challenging seller. There will always be disagreements and negotiating points that come up during the overall sale process and it's important to be reasonable when working to finalize a sale. Fortunately, your ecommerce business broker can help screen potential buyers to ensure any buyer questions or buyer conference calls are only coming for qualified buyers who are serious about purchasing an internet business.