When advertising your business for sale, it is not necessary to seek the services of a business broker.
There is no question that the skills and qualification of a professional business broker will provide are valuable in the business selling process, but by following a few simple steps you can complete the transaction of the sale privately, while saving money on agent fees and commissions.
There are 4 basic steps that need to be taken.
The first thing that needs to be calculated is the value of the business. This may seem like an easy task, but advertising your business at the wrong price will have disastrous effect. An over valuation of the business will see potential buyers come and go and as a result, the quick business sale you were after will turn out to be a lengthy, expensive exercise. On the other hand, an under valuation of your business will see a quick sale, and huge financial losses bringing your equity to a minimum and in some cases coming out of the sale owing money to the banks. Valuing a business is not only based on profit and assets. Location, condition and good will are also taken into account. Seek advice from your solicitor or accountant. Between the two, they should be able to determine exactly what your business is worth. Always allow a 10% buffer on your advertised price. This will give you room to negotiate and ultimately hit your selling price.
When it comes to the promoting and advertising of your business for sale, there are many different options. Traditional newspaper business for sale classifieds and business for sale magazines are effective, however with the huge growth and power of the internet, this will be the most effective advertising you will do. There are many businesses for sale website such as www.Business-Trader.com.au which generate a lot of traffic, giving your listing maximum exposure. If your business has a shop front, you can also utilize this space as a place to advertise your business for sale.
Once your advertising campaign has taken full effect and are now generating many leads and enquiries, you need to be able to qualify a potential buyer. Approximately 90% of your enquiries will be tyre kickers, and having the ability to eliminate these enquires will be a huge benefit. Being able to tell the difference between the serious and not serious buyers will save you time and money. Doing a credit check on the buyer or company will give you an immediate inside look of the potential customers financials. Focusing your attention on a buyer who is really not interested in buying a business, may lead to a serious buyer being neglected and walking away from the sale.
Last but not least, the closing of the sale. Having your business ready for the sale will also save you time when you have found a buyer. You want to make sure that all of your paper work, legals, outstanding loans, overdue accounts etc are all up to speed. When closing the deal, you want it to go as smoothly and quickly as possible and by being prepared you can avoid delays and achieve a quick sale.