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5 tips to use when selling your business

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Article Overview: Selling a business is rarely a simple and straight forward process. One of the biggest mistakes I’ve found is that the seller doesn’t put themselves in the shoes of the other parties be it the buyer, lender, landlord, employees, franchisor or whoever. This article outlines 5 suggestions for a seller to use when approaching the way to sell their business.

5 tips to use when selling your business

To successfully sell a business requires a lot of preparation, attention to detail and organization. Most sellers badly underestimate both what needs to be done and what to do if a buyer comes along. A good rule of thumb is that it takes 10 buyer inquiries to reach a potential and qualified buyer. There is not a shortage of buyers; there is a shortage of qualified and motivated buyers so if you find one; you need to have you're "A" game ready.

Here's 5 tips to help you prepare and get organized.

1. Assuming you know what the buyer wants.

Buying a business is a unique experience with every transaction unique. Assuming you understand the needs, wants and motivations of a buyer is a bad practice as a smart buyer will not reveal their true motivations.

2. Failing to understand the buyer's objectives and if the business meets their needs.

Assuming you know what the buyer wants is totally different to clearly understanding what the buyer wants to know from you and whether or not this is the right business for them to buy. If you can meet the criteria the buyer gives you...you are on your way even though the criteria may not ultimately be what the buyer says to you.

3. Improper pre-sale planning and failing to be organized.

There are so many steps to selling a business. Being organized and having all the right processes in place is a starting point to try and be successful. This includes the legal forms and processes you want a buyer to sign such as a confidentiality agreement, buyers financial statement and buyer disclosure.

4. Answering the question before it is asked.

Be careful to understand the question and then provide the right answer. You may be answering a different question than the buyer is asking...and that can be good or bad.

5. Not allowing the buyer to feel some sense of control in the decision making process.

The standard practice is for all parties to try to control the process. Most deals collapse because one party doesn't understand what or why a question or process is being followed at this point in the transaction. Trust is one of the hardest components to create.

Selling a business requires a lot of patience, making sure it's clear what you are selling, being organized so you can respond to questions and requests for information while at the same time being alert to only answer questions at the appropriate time.

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Article Tags: Andrew Rogerson, business, Business broker Sacramento, business escrow, business for sale, Business ownership, business plan, due diligence, Entrepreneur, exit plan, franchise, franchise for sale, Murphy Business and Financial Sacramento, Sacramento business broker, Sacramento business ownership, Sacramento business valuation, Sacramento business value, Sell a business, succession planning



Related Forum Posts
Re: How to develop sales contacts? - Gary, What kind of products are you selling? Are they something you could sell online? The internet opens up a whole lot of possibilities to generate leads, prospects and eventually customers. You've been given great advice already. The same tips can also apply online as well if you have a website or plan to start selling online. I'm interested to hear about your business and your products. Take Care, Alan
Re: Unsecured Lines of Credit - Hello, creditguru: Thanks for the recommendation. Here are two questions for you that will further help our forum members to make use of your suggestion: 1. How [u:p6n6npsx]does[/u:p6n6npsx] a business establish a strong business credit profile? (Especially small business and home business.) Please provide some tips or guidelines on how to do this effectively. 2. Commercial credit lines can be helpful to a business, but they do require responsible management on the part of the business owner. What tips, recommendations or cautions can you offer to business owners who are considering commercial lines of credit? Thanks. GT :-]
Re: Which is the best for beginners? - Hi Apu, I think one good way for Internet beginners to start is to experiment with selling stuff on eBay. In my own case I began by making a website about Japanese mahjong and then tried selling some mahjong goods on it. It worked! Actually, I remember that before I tried selling mahjong goods I experimented with selling other kinds of thing such as Japanese comics on eBay and things like that. I only got into affiliate marketing later on, and used the money I was making selling goods to fund my experiments with affiliate and network marketing.
Re: Branding Your Business On Facebook: Be Creative - Thanks for the tips, Evan. I just got on Facebook this past week, and am looking for ways to gain exposure to my business. I was already on Twitter and have found this to be a beneficial tool for global exposure. This works for me since my coaching is done over the phone. Great tips! Aneshia
Re: 3 Business Lessons I Learned (and almost missed) - Hello Evan, I watched the video and it was great to listen to your story on how you become a successful entrepreneur! With me, I never wanted to be in business because the thing I most dislike about it is selling. Let's just say that I'm the quiet kind and trying to convince a person to buy isn't really something i enjoy. But now that I'm older, i am more open to it, but I really need to believe in the product or service before I can bravely try to do "selling". I'm also very scared with numbers. The accounting part of managing a business scares me a lot, I am sort of dyslexic but only with numbers. Still, it is great to hear about other people's success. Maybe, if we had something like the Junior Achievement business high school program here, it would have helped me to see the possibility of starting a business. Thanks for sharing your story. I think the lessons you learned makes a lot of sense and I'll try to remember them in case I ever find myself in a business:D


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