The Importance of Owner Flexibility
By The Liberty Group of Nevada
In a world filled with constant changes, it is vital to remain adaptable and flexible to shifting circumstances. As the expression goes, bend but don’t break. This principle applies not only in daily life and its challenges, but also in most business environments. This is especially the case during the selling and transferring of an established business to a new owner. Therefore, it is quite important for business owners to practice flexibility during their attempts at selling a business.
One of the main reasons for being flexible is the understanding that all parties are acting in an economic environment with imperfect knowledge. In a world where everyone had perfect knowledge there would be no need for negotiations when you sell your business because everyone would know the true value of the company and what should therefore be paid for it. Yet, this not the case. The buyer does not know fully what should be paid for the company and you as the owner cannot be completely sure what price it should be sold at. Therefore, one must be adaptable and flexible because no one fully knows all the details of the company and the economic environment it is operating in.
Flexibility is also important in developing a health report with your potential buyers. Most people find individuals that act rigid and uncompromising difficult to work with and unlikable. This can strain the communication and cooperation that is necessary for a successful business ownership transfer to occur. Flexibility works to prevent this by portraying the business owner as an accommodating and welcoming individual, which will help the process continue forward.
While it is important to be flexible during the negotiations of selling your business, it should be noted that this principle is best practiced in a healthy moderation. You know your limits and what you are willing to accept as fair price based upon both your knowledge and that of the current operating market. You should never sell something at less than a company’s true value. It is true that the exact figure of value for a company is often subjective and difficult to define, creating a general range for the value is not. Therefore, this range should be accurately estimated before the selling process and used as general guideline for acceptable buyer proposals.
It cannot be argued that flexibility is a must when it comes to owners selling their business. Yet, this adaptability must be tampered by a firm conviction on certain limits and lines that you will not cross. To balance this need for both flexibility and firmness is often a daunting task, one that you may find yourself on needing a third-party to help with.
The Liberty Group of Nevada has years of experience and thousands of successful business ownership transactions under our belt. This has given us a great deal of knowledge and understanding about the subject, allowing us to guide business owners on balancing the two contradicting needs for both flexibility and firmness when you wish to sell your business. To start on the business selling process today, please contact us by calling (775) 825-3948 or emailing us at firstname.lastname@example.org. We look forward to hearing from you.