Business Broker Minute: Selling A Business In Today’s Marketplace
Current economic conditions make selling a business a challenging endeavor. Even when sellers price a business to move, many buyers hesitate for fear of adverse conditions such as an economic downturn, changing taxes and new regulations. Unable to do much to change economic and governmental policies, business owners can still take definite steps that will improve their chance of selling their business.
Business owners should not allow their business to go into freefall while awaiting a buyer. Instead, they should take some steps to streamline their operations and resolve any festering problems. Trimming the payroll, paying off debts and patching up sour relations with vendors, customers and other stakeholders can prepare a business for sale. If a business seems to have a lot of unresolved issues that affect profitability, prospective buyers will either avoid it or offer to buy it at a reduced price.
Business Broker: Price it Right
In most cases, business owners have only one chance to sell their business to a buyer. After buyers reject the opportunity to buy, they rarely become willing to take another look. Therefore, sellers should make an effort to ask the right price. Business owners can ask for a professional assessment of their business to help determine a fair asking price. They can also check the selling prices of similar businesses in the area to help arrive at a competitive price tag.
Business Broker: Offer Financing
Business owners who can either finance a sale themselves or offer commercial financing plans available on site can encourage buyers to take the plunge. A willingness to help buyers complete the sale often wins the hearts of buyers and makes them willing to pay a higher price. Learn more – Understanding the Business Valuation Process.
Business Broker: How To Hire