Entrepreneurs are smart people, and most are great at math. A problem arises, however, when a small business owner decides that they are interested in selling their business. More often than not, a business that is put up for sale by the owner alone will be priced incorrectly – so incorrectly that the business might never sell.

How is it that such successful people have no idea what their largest asset is worth?

First and foremost, deciding on a listing price for a business is complicated, and it can be difficult to remove yourself from the process. An owner knows exactly how much money and effort they have put into the business over the years, but a listing price is not a tally of those numbers.

Realistically, your business is only going to sell for what someone is willing to pay for it.

That being said, a business owner still wants to get top dollar and a good return on their investment of time, money and energy.

How do you reconcile those two needs with one number? Enlist some help.

Seek the advice of a professional business broker. They work in the market and know the nuances of setting the right price.

You might want all the money in the world for your business, but if you set the price too high right off the bat, potential buyers will be driven away, probably for good. Set your price too low, and you could wind up selling yourself short or inspiring suspicion from prospective buyers. A price that seems low might conjure the idea that you are selling because you want to get off a sinking ship.

Gather your financial information and have a talk with a qualified business broker. They will be able to help you price your business so that you can get the most out of the sale without scaring buyers away.

Are you a business owner who doesn’t know what your business should list for? Are you interested in finding out what your largest asset is worth to a buyer? Please feel free to leave a comment or question here, and we will be happy to assist you with your listing and pricing questions.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com