1) Buyer expectations. Whether you try to sell your own business or are represented by a Business Broker, buyers expect relevant and useful information to be disclosed to them. How and when you disclose the information to them is very critical.
2) Where you start determines where you end up. A chain reaction occurs once you begin the process of selling your business. It is difficult to stop it. You can be swept along to your detriment in the wrong direction if you’re not totally prepared.
It’s a balancing act. You want to sell but it takes time to prepare and handle the selling process. And you have a business to manage and a life to live.
Don’t naively think you can delegate the selling process to just anyone. A large portion of your net worth may be at risk. It’s important that you carefully manage your business during the time it is for sale, perhaps better than you ever have managed it. You must also correctly handle each step of the process to sell a business.
Unless you’re expert at selling businesses and have the massive amount of time it takes to prepare your business for sale, hire a qualified Business Broker to handle some of the tasks. Business Brokers can show you how to be efficient in the tasks you want to handle. Don’t try to do-it-all-yourself unless you are positive you can do it right.
3) When is the best time to sell your business? Why risk money, and the sweat and tears you’ve invested in your business? When it’s time to cash out, you must know how to get out— quickly—without leaving money on the table. It takes preparation and timing. Business Brokers can show you how to do both, so you get the best deal.
4) Why are you selling? If you give the wrong answer, you may not sell your business. If you give the right answer in the wrong way, it may take a long time for you to sell and you will not get the highest price.
5) Appearance is everything! How a buyer perceives your business is more important than what you think about your business.
6) There is a “best” buyer. Your business will sell more quickly and on better terms if you communicate with buyers who do not pose a competitive threat. Look for buyers who are actively searching for a business like yours. And find out early in your communication whether the buyer has sufficient financial and managerial capability to buy your business—right now.
Business Brokers will show you how to excite buyers about your business (without identifying it too soon) and how to screen buyers before you reveal trade secrets.
You’ve worked too hard and too long to risk everything. There is a process to sell your business. Learn it; use it if you choose to sell on your own. Or list your business for sale with the right certified Business Broker for your type and size of business. When choosing a Business Broker make sure your Business Broker is certified as a CBI (Certified Business Intermediary).