It can be really, really annoying when you sit across from a business buyer who thinks they know everything.

They have the fresh-faced optimism of someone new to the world of entrepreneurship – an optimism you once had until the grinding reality of business ownership taught you what it’s really like. Owning a business is tough, and growing that business is even tougher. You’ve spent years trying and failing (and trying again) to get your business to where it is today – and now that business is under the scrutiny of someone who knows little to nothing about it.

Most buyers are going to look at your business and see things that they feel are obvious solutions – to growth, to staffing issues, to costs – but for you those “obvious solutions” are non-starters because you’ve already tried them or because the nuances of your business would make them impossible. 

Here’s the thing – buyers are probably going to ask you why you haven’t implemented their “obvious solutions“. It’s going to be very, very annoying when they do. Your job in that moment is to resist the urge to roll your eyes or groan. Don’t be short or snarky either. Blowing off a buyer’s thoughts on your business will almost certainly turn them off. It can also discourage a buyer from considering your business because your terrible reaction just told them there isn’t any room for growth. 

So I’m just supposed to sit there and listen, even if their idea is awful?

Yes. When buyers ask about why you haven’t done one thing or another, you need to respond in a positive way – like this:

Sure, we tried something similar to that, but we didn’t have much success because (fill in the blank). Maybe the timing wasn’t right or perhaps we could have implemented the idea differently. If you try a different approach maybe it will work for you?

See how much better that sounds? Your answers to questions about “obvious solutions” should contain the details of what you tried and why you felt it didn’t work at that time. You should also give buyers who ask this question examples of ideas you’ve had that you were unable to implement because of financial or time constraints that may not be an issue for a new owner. By handling their questions this way, you are showing them that as the owner of the business you were open to new ideas and had an eye on growth – even if those new ideas didn’t pan out the way you’d hoped they would.

The message here is you don’t want your grumpy, negative response to a buyer’s idea to tank your deal. Every business has room for growth, and sometimes it’s the craziest ideas that get the biggest bang for the buck. Keep your answers to questions positive – and don’t roll those eyes.

Are you getting ready to sell your business and are wondering what else buyers might ask you? Would you like to know more about how buyer meetings typically go? Ask us! Leave any questions or comments and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

If you own a business, you know how to sell.

You’ve been getting your products and services to clients for years. You know how to focus on the customer experience to better understand what your customer base wants. When the time comes to sell, however, many business owners think they can get to a closing table by merely supplying a recent P&L and some old tax returns. Would you buy a business with nothing more than that? Probably not.

If you are selling your business, you need to do what you’ve done all along – focus on the customer experience, only now your customer is a buyer. You need to think about what motivates a buyer to choose one business over another.

Here’s how:

Get with the times.

Buyers are typically younger and more tech-savvy than their business seller counterparts, so your business needs to speak to buyers who are looking for technology as an answer to operational needs. Make sure your business has a well-designed and properly attended website and social media presence. Upgrade your POS systems. Use digital marketing avenues to generate new clientele. Using technology to upgrade your business tells buyers you’re focused on the future. 

Be organized.

You have to have your books in order. Buyers want to see proof of the numbers you’re claiming and they want that proof now. Legible financials will always beat out a box of crumpled receipts, so streamline and keep up with your paperwork. Streamlined books speak volumes about how you handle the business as whole – an organized business owner is much more appealing than a disorganized mess. 

Fix what needs it.

You know that freezer with the broken handle you’ve been putting up with for years? Fix it. Leaving even minor, but obvious, aesthetic issues shows a lack of attention to detail – and you’d better believe that there are other businesses like yours that run a tighter ship. A buyer will obviously choose a business in better physical shape than one that isn’t – so get fixing.

Don’t procrastinate.

We know it can be overwhelming when your business is on the market, but you can’t let requests from buyers languish – otherwise those buyers will move on. You need to stay on top of buyer requests, even if you feel like they don’t need what they’ve asked for. Procrastination tells them you aren’t that serious about selling, so they’ll move on.

Buyers have a litany of choices in today’s market, so the competition for business sellers is tough. You need to put a plan in place that will help your business stand out from the crowd. By focusing on the buyer experience your business will be more appealing to buyers in the market, so start making these changes today.

Have you thought about selling your business but hadn’t considered the buyer experince? Do you have more questions about how buyers choose between businesses? Ask us! Please leave any questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com