Posted 02-22-2011 2:59 pm by
Selling a business is a big decision! Are you ready to sell?
You have spent most of your time, energy, and money building, operating, and running your business for years. Refresh your selling skills with some new strategies. The first step to selling your business is to determine your goals. An agent will go over objectives and get the idea of your ultimate goals. Prepare to assess your time goals, financial goals, level of commitment in selling, and an overview of the marketing process. In doing this, agents almost become "one" with their clients. They find out everything they need to know to help sell your business. In addition to securing a great agent, an effective ad is a great way to get your business out there. It may seem like it takes more time in the beginning, but it will definitely pay off in the future. A good seller will keep these hints in mind: Writing detailed ads is crucial, high intensity exposure is important for a fast sale, and more text is always better than less text. Selling your business at the right time for the right reasons is essential. Before you sell your business, you have to think about what all the assets of a business are and figure out exactly what you are selling. Agents can help you figure this out, and are typically great at finding a lot of different potential buyers for your business. As you are thinking about price points, always take into consideration the terms of sale first. The terms of the sale will include what you are selling (the entire business entity or particular assets of the business), how you are selling it (payment plan arrangements, loan repayment, or seller financing), and the final price. Terms are even more important than the price, in that they will, in the majority of cases, "make or break" the deal. To help draft or review your terms of sale agreement, hire a local small business lawyer, or ask your agent how he/she can help. Sellers don’t play hardball with potential buyers because it could scare them off. Being intimidating is not only unnecessary, but it could scare the potential buyer off. Good sellers always make sure to keep emotions out of negotiation. Being friendly is always the key. Plenty of business sellers agree that by treating potential buyers nicely, they have inflated their numbers. Hence the phrase, "Kill them with kindness" comes into play. Competent agents need valuation and accounting experience, knowledge in the legal aspects of selling a business, patience, and salesmanship. A good agent has been around the business block before entering the profession. It is rarely a good idea to go with an agent straight out of college, as experience is completely necessary. Sellers who don’t seem like they know entirely what they are talking about could seriously hurt their numbers. A great agent comes complete with several excellent traits, including: hardworking, experienced, successful, caring, and a real "people lover." Agents who specialize in selling businesses that are similar to yours are always the best bet. Don’t let talented agents fool you. They could be one of the best agents in your area, but they could even hit a rough patch and have some trouble selling your business because they don’t have as much experience in your industry. So always remember to meet your potential agent a few times before hiring them to make sure they have the traits you need to make the sale. Also note that typically, agents will add on a profit margin and bargaining figure, normally from 10 to 50 percent of the business’ value as they see it. The reasoning behind this is to give the business seller extra room to haggle with potential buyers. If buyers offer a low price, agents will usually compromise by coming down in the asking price and still realize a profit. Everyone appreciates a reasonable price, so a talente
d agent would make sure to pick out the best sales price possible. This is where friendliness comes in to play. While haggling, the agent must maintain their attitude. If an agent is nice throughout the whole process of negotiating, they are basically sealing the deal. The end factor is inflated numbers. Another way certain agents inflate their numbers is by using web based software. Web based software keeps all their important information organized. This system really helps to keep potential purchasers, potential sellers, business for sale listings, and documents in order. This software also handles the operation of an entire business office. If a seller is unorganized they could really ruin a potential sale. Being organized is so important in selling a business. You will totally see a difference in your numbers if you take this advice.
AARON MULLER| ADVANTAGE COMMERCIAL BROKERS
BUSINESS BROKER, COMMERCIAL PROPERTY SPECIALIST
DIRECT: 425.766.3940
FAX: 425.882.2547
CHECK OUT MY LISTINGS AT www.acbrokersinc.com
