Sell
Your Business Tips, Hints & Techniques:
Enter
your name & e-mail address below and each week I'll send you
detailed tips, facts, resources & ideas you can use right
away to help sell your business faster and for more money.
Overview
Of The Selling Process
Business
Buyers: Understanding How Think
On
the previous page we talked about the features of your company
that business buyers will look at first: Features
That Attract Buyers
Now,
lets look at the buyer herself: her fears, concerns and priorities.
In order to learn how to motivate someone to buy your business
you should spend a little time thinking like a buyer.
Here
are some important truths about buyers that you will want to
keep in mind during the selling process.
Truth
#1 - Money is not the #1 reason people want to own their own
business
Many
surveys of entrepreneurs have shown that money is normally 4th
or 5th on their list of priorities.
The
ability to control one's own destiny, freedom from a boss or
corporate structure and the opportunity to be creative are always
at the top of the list of motives. Status, recognition and the
ability to work directly with employees and customers are also
equally or more important to a business buyer than just
making a lot of money. When presenting your business to prospects,
show them how buying your company can provide them with
these benefits.
Along
these same lines, don't forget to tell the prospect about the
fun part of owning your business.
Will
the new owner get to travel to exotic locations or meet exciting
new people? Are there any perks like regular golf outings
with clients? If owning your business has brought you a lot
of enjoyment and excitement, make sure the buyer knows it. You
never know what aspect of your business may just be the thing
that makes a buyer want your business over all the others that
are for sale.
Truth
#2 - Business Buyers Hate Risk.
While
sellers focus mainly on trying to show the buyer how bright
the future can be if everything goes right, the buyer will be
looking for all the things that can go wrong. Some
things a buyer will view as increasing their risk include:
** financial statements that are sloppy, incomplete or nonexistent
**
sales and profits that have been going down without explanation
**
a sales price based on a best-case-scenario future
**
Old machinery and vehicles that will likely need to be replaced
or repaired in the immediate future
Qualified
business buyers will be looking at - and comparing your company
to - other businesses that are for sale. The more you can do
to limit risks like the ones mentioned above, the better
you will look compared to these other businesses. In
the Preparation Section
we will discuss what to do before you put your business on the
market so that you make the best possible impression on the
buyer.
Truth
#3 - Buyers don't always have a specific type of business in
mind at first.
Most small business buyers are first-timers. They may have decided
they definitely want to own their own business, but don't know
yet what type of business. Many first time buyers are career
changers or retirees with tremendous abilities and experience.
That they are currently exploring several industries should
in no way make you doubt their seriousness.
However, the prospect should already have done a significant
amount of research into your industry and the should
be able to explain why he is interested in your type of business.
If he hasn't, then he is using you to do his research and you
may be wasting your time.
Truth
#4 - You willingness to help finance part of the transaction
will increase the buyer's willingness to pay your asking price.
When
a seller is willing to finance a part of the sale, it goes a
long way toward building the business buyer's confidence
in the business.
Down
payment, interest rate and length of financing are all variables
that can effect the attractiveness of your asking price. If
you can be a little flexible on all of these terms it will make
closing the deal at your desired price a lot easier.
Truth
#5 - Your willingness to stay on for a training period will
be viewed as a big positive.
Even
the promise of just 30 days of on-the-job training will go a
long way in building your buyer's confidence in the deal. Especially
if they are new to the industry.
Sell
Your Business Tips, Hints & Techniques:
Enter
your name & e-mail address below and each week I'll send
you detailed tips, facts, resources & ideas you can use
right away to help sell your business faster and for more money.
NEXT:
Common
Mistakes Business Owners Make When They Sell
