As the owner and operator of your own small business, there isn’t anything business-related that you haven’t come across and been able to handle. What about when the time comes to sell your business? Surely you can go that alone too, right?

Not a chance. The knowledge required to be a great business owner does not give you the skills necessary to be able to successfully sell your business on your own. Why?

1. You think that going it alone (and all the extra work that entails) is worth it if you don’t have to pay a business broker a commission.

This is possibly the biggest error business owners make. Do they really have the time (or expert experience) to prepare a marketing package, create and place advertisements (which can cost a great deal of money), show the business to prospective buyers (even the ones who are not financially qualified to even consider buying the business) and clearly explain the business finances? Discretion and confidentiality are also out the window – consider some of the risks if your employees, suppliers, clients, and competitors figure out your business is for sale?

2. You think that selling a house and selling a business are the same. They’re not.

Trying to sell a small business is often a much more complex enterprise than a seller might anticipate. Each and every small business is unique and business brokers may need to cope with landlords, CPAs and franchisors, and also bankers. There could be licensing concerns, dealer and employment contracts, and tax considerations. There can also be quite a few legal issues which can impact a small business sale. A knowledgeable business broker can guide the seller through each one of these stumbling blocks and guard against post-sale difficulties.

3. You  do not know how to correctly price your  business.

What the seller paid for it, what various (and/or similar) other small businesses are marketed for, and what outdated rules-of-thumb that might have once applied may have no connection to today’s worth. Set the selling price high and really serious buyers will not even start looking, set the price low and you might lose out on hard earned capital gain. Good business brokers have access to the most recent statistics on small business sales and contemporary methodologies to deliver accurate evaluations.

Listing with a knowledgeable business broker ensures your company is marketed professionally by means of a multi-pronged advertising strategy (internet, database, print, direct mail) and negotiations are dealt with effectively to attain the greatest possible selling price together with the least amount of issues.

Do you have questions about what a business broker could do for your business sale? Have you tried going it alone without much success? Please leave us a comment or question here, and we will be happy to help you with your business sale questions.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com