Whether you’re buying, selling, or merging your business, closing a profitable deal requires a lot of brainwork. One wrong step and the deal can blow up in your face.
Ask any business broker the most challenging part of selling or buying a business, they’ll say: closing a deal. Even after you’ve accepted negotiations, made your best offers, and aligned all the required and pending paperwork, the buyer or seller can bail out at any time.
However, there’s always an underlying reason behind a failed sales deal. Read on as we uncover the four most common ones.
1. Lack of Trust
More than 98% of the buyers who accept an offer under a low-trust relationship are likely to bail out at the eleventh hour.
Trustworthiness and reliability are the two main elements of a successful business deal. Building trust helps you excel in each step of the sales process, from finding prospects to accepting the final payment.
2. No Urgency
Consumer buying behavior is driven by time and need. It’s imperative to create a sense of urgency if you want to close a deal without delays. Create the right timing, identify your customer’s pain point, and offer a lucrative price point that fits their requirement and budget.
Inconsistency and inefficiency are the two most disliked aspects of any sales deal. Whether you’re a buyer or seller, you have to stay transparent and consistent with paperwork, word of mouth, and your actions.
From performing due diligence, contingency planning, and keeping track of financials to ensuring a smooth communication channel with your prospect, you have to be highly consistent and foolproof.
4. Price Point
Another primary reason behind unsuccessful sales deal is the customer’s budget constraint. Most sellers make this mistake by not studying and identifying the right customer and selling to a prospect that doesn’t even have enough money to buy a business.
Find buyers, not recommenders, because a wrong customer will only consume your time, effort, and energy, and walk out without closing the deal.
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