If you are thinking about selling your business, have you given any thought to how you’ll get started? What’s the first step? You’re probably acquainted with how to market your product, but how do you market your business? Selling your business is not exactly simple, certainly not as straightforward as it seems like it should be. Let’s cover some of the ins and outs of marketing your business for sale.
One thing that makes marketing your business for sale complicated is that it’s possible to sell your business without ever advertising it. There may be situations where a buyer is standing by, waiting to take on your business at a moment’s notice. There may even be a pre-arranged price and set of terms. In this particular situation, there is essentially no marketing whatsoever. Your business simply changes hands.
Even in cases where some amount of advertising or notice will be required, it’s often a good idea to limit the amount of advance public notice. This caution is good for two reason. First, early advance notice that your selling your business could provide a helpful heads up to your competitors. That’s probably something that you don’t want to do in terms of helping your customers and preserving the legacy of your business.
Advance notice of a sale by marketing your business could also have a demoralizing effect on your employees. They might become concerned about their own job security and begin looking elsewhere for employment. This could actually end up lowering the value of your business, especially if productivity or customer service begins to decline.
One way to avoid most of the stress that comes with marketing your business for sale is to sell your business through business brokers. Business brokers buy and sell businesses for a living, so they can bring quite a bit of experience to the deal. They may have a ready list of buyers who are interested in purchasing a business just like yours. Even if this is not the case, they will have knowledge of places where your business sale can be listed and marketed effectively.
Some business owners try to avoid the need for marketing their business by trying to sell their business to a family member. They believe that selling to a relative will be less stressful than negotiating with a stranger. While it’s true that the marketing phase might be simpler, most experts agree that negotiating a business sale with a family member is far more stressful than most people anticipate.
Marketing your business for sale normally includes the whole process of pricing your business for sale and publicizing its availability. As you might expect, the real key to successfully marketing your business for sale is to connect with the right person.
Another reason that some business sellers turn to business brokers for help is to save time. The most valuable place you can be during a business sale is where you’ve always been–running your business and making it as valuable as possible. Marketing your business for sale requires around-the-clock effort. It’s more than just advertising your business for sale. Documents will need to be prepared and released to potential buyers. At the same time, you’ll need to continue to maintain confidentiality.
Marketing your business for sale is more than just getting the word out. It is an entire process that includes pricing your business and creating an exit strategy for you. You could also include activities like interviewing potential buyers, negotiating with qualified buyers, and completing the sale.
If you’re thinking about marketing your business for sale on your own, without business brokers, it’s certainly not impossible. Other business owners have done this successfully. If you have the time and expertise to maintain the necessary documentation and negotiate the various financial planning and tax issues, you may find that you prefer to be personally involved in all parts of the process.
Ultimately, how you go about marketing your business for sale is your decision. Many sellers find that business brokers provide a competent hands-off service that usually ends with a successful sale and transition. Other sellers prefer to draw on their own experience and passion to communicate the value and worth of their business to potential buyers. You may find that marketing your business for sale is not as complicated or traumatic as some believe.