Most businesses fail because the market doesn’t need them, but 29% of businesses that fail do so because they run out of cash. If your business is inching toward the latter category, it could benefit from a new business owner.

To make a profit and watch your business grow in the hands of someone else, you have to avoid common mistakes. When selling your business, it’s best to learn from the experts.

Keep reading to learn four mistakes to avoid during a business sale.

1. Not Planning Ahead

One of the most common mistakes when selling a business is waiting too long and not planning out the process in advance. It can take up to four years to finalize the sale of a business.

Long-term planning is key to the success of selling your business. Always keep detailed business history, updated records, and a sales portfolio.

2. Not Finding the Right Person to Represent the Business

Finding the right merger and acquisition advisor is more important than owners think. Business owners who go with the first M&A advisor they find to speed up the process of selling the business end up with a less than ideal outcome.

Take time to find the advisor who is right for your business. Doing so will save you money and time in the long run.

When you interview M&A advisors, ask them about their approach to business sales and if they already have leads.

3. Asking Too Much or Too Little

When you set a price to sell your business, it needs to be realistic for both you and potential buyers. To decide on a price, consider the following factors:

• Industry
• Similar businesses
• Economy
• Marketplace

An M&A advisor can provide you with solid advice on pricing your business for sale.

4. Selling to the Wrong Person

The right person to sell to might be the first offer you get, but this is not always the case. You’ll want to sell to an owner who has business experience and can be a good leader.

If the new owner isn’t making business sales, this could affect the money that is supposed to go in your pocket from the sale.