Why Most Businesses Don't Sell

Selling a business can be a complex and time-consuming process. While many business owners dream of selling their businesses for a profit, the harsh reality is that most businesses don't sell. In fact, only 1 in 13 businesses listed for sale actually sells. Here are some reasons why:

1. Unrealistic expectations

One of the most common reasons businesses don't sell is that the owner has an unrealistic expectations of how much their business is worth. Business owners may have an emotional attachment to their business and believe that it's worth more than it is. This can lead to pricing the business too high and asking for too much, which can turn off potential buyers.

2. Lack of Planning & Preparation

Selling a business requires planning and preparation. This includes ensuring all finances are in good shape and the accounts are clean, and that all processes inside the business are systematised. Additionally, the business should be able to function by itself, without any dependence on the current owners. Many business owners fail to prepare adequately, which can lead to delays and make the business less attractive to buyers.

3. Poor Marketing

Marketing a business for sale is crucial to attracting potential buyers. However, many business owners don't know how to market their business and fall into the trap of hiring sub-par business brokers who charge high fees and never successfully sell their business. Without a well-executed marketing plan, it can be challenging to attract the right buyers and sell the business.

4. External Factors

Finally, external factors can also impact the sale of a business. Economic conditions, industry trends, and market competition can all impact the sale of a business. For example, if there is a lot of competition in the market, it may be more difficult to sell a business.

In conclusion, there are many reasons why most businesses don't sell. From unrealistic valuations to lack of planning and preparation, poor marketing, and external factors, there are many challenges that business owners face when trying to sell their businesses. However, with the right approach and professional support business owners can drastically increase their chances of successfully selling their businesses at the highest valuation possible.