More
On Finding Business Buyers
What
Business Buyers Want
To successfully
deal with individual business
buyers it helps to have an understanding of the priorities
they bring to the table. The
following are some facts about most prospects that you should
keep in mind :
1.
Money is not always the #1 reason people want to own their
own business.
Many studies and surveys of business buyers have shown that
money is normally 4th or 5th on the priority list. The ability
to control one's own destiny, and freedom from a boss or corporate
structure are time after time at the top of the list
of motivators. 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.
2.
Business buyers don't always have a specific type of business
in mind.
If a potential
buyer is also considering businesses in other types of industries
that's not necessarily bad. However, he should already have
done a significant amount of research into your type of business.
If he hasn't, then he is using you to do his research and
you may be wasting your time.
3.
You willingness to help finance part of the transaction will
increase the buyer's willingness to pay your asking price.
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.
4.
Your willingness to stay on for a training period will
be viewed as a 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.
5. Business buyers are more interested
in the revenues the business will generate in the future for
them than they are in the revenues it has already generated
for you.
In reality, the
future value of your business depends heavily on who buys
it. This is good news because buyers have a lot of self-confidence
and tend to think any business will do better once they are
in control. Ask yourself, what
strengths, background and skills does this buyer bring to
the table? Then show him how his special talents (salesmanship,
marketing skill, financial acumen or whatever is his greatest
strengths) are just what this business has been in need of.
Now is not the
time to feed your ego - let the buyer believe he is a better
businessperson than you are (reality is not as important as
his perception of reality). Your propsect will start to visualize
the unlimited potential the business will have - once he is
in control. A business with
tremendous growth potential can sometimes be sold for a lot
more than the current financial reports can justify - if the
buyer can see the potential.
More
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To Sell Your Business - 4 Important keys
Do
You Need A Business Broker To Help Find Business Buyers
How
To Choose A Business Appraiser
TheBizSeller.com
can help you find qualified business buyers. We pre-screen
all buyers according to your demands, guarantee your confidentiality
and you never pay a business broker commission. For
more info go to Finding
Business Buyers
