Get Adobe Flash player


Search this site for:

Related Links

Valid XHTML 1.0 Transitional

Valid CSS!

5 Keys to Selling Your Business for What It's Worth

5 Keys to Selling your Business for What it's Worth!!!!

How to market and sell your business with success!

By David Bryant Sound Business Brokers Copyright 2005


As a business owner you have made a substantial investment of your time, talents, money and who knows what else, to feed it, nurture it, build it and grow it. And now has come the time, that for whatever reason, you want to sell it to an interested buyer for a fair and reasonable price - and for the best price that it can sell for. This business is your baby. It's where you've spent so much of your energy and effort so it behooves you to take great care in how you go about selling it to another interested business owner!

How you go about selling this investment of your life will greatly impact the quality, experience and return of this investment. So it makes great sense to do what it takes to do this right!

Here are 5 important keys to selling your business for what it's truly worth! And you deserve no less!

KEY #1:


Many business owners would like to take charge of this process completely themselves without any input from others as to its value and worth in the current marketplace. This go it alone method does work sometimes, however, the odds of the owner getting the best price from the fairly limited pool of business buyers that he or she is exposed to is very slim indeed. In many cases, business owners who decide to sell the business on their own can make valuation errors - either over-pricing or under-pricing their business. And as a result can either become frustrated when it doesn't sell or wonder why the business sold so quickly as a result from it being under-valued.

These business valuation errors can be avoided most of the time by having an independent third party take the time and provide the expertise to help you accurately determine the appropriate value of your business. If your business is in business to valuate other businesses then this may not be necessary - as it is your business to do so. However, if your business is in the business of repairing vehicles, then it makes good sense to have a third party valuate your vehicle repair business while your business repairs vehicles.

If you look back at all the time, energy, money you've invested in your business, it should be no big surprise that you want to have the most accurate business valuation possible. As has been your modus operandi in business, you want your feet firmly planted in reality. A third party business valuation can provide this to you.

KEY #2:


There are many reasons why you would want to sell your business quietly and confidentially while maximizing its exposure to as many buyers as possible. Here are a few reasons why this is so important.

First, existing customers may think there is something wrong with your business if they hear that you are selling, even though, there very may well be nothing wrong with your business at all. Knowledge of its impending sale may just drive them to your competition which will result in a negative impact on its value from a sales revenue standpoint.

Second, existing employees may think that their jobs are at risk and pose a risk and either leave or do less as morale is impacted. Knowing that the business is up for sale could negatively impact the stability of your employee base which would also negatively impact sales revenue and the ultimate value of your business.

Third, by having a third party confidentially present our business to others, you can avoid these negative impacts and maintain the integrity of value that your business deserves.

KEY #3:


A mechanic repair shop's special talent is the ability to diagnose a problem, determine the solution and take action to fix the problem. The repair shop's special talent is not finding out what the most accurate value of the business is, and selling to a potential buyer. It could be done, but what will the quality of this transaction be like? Would that business owner get the maximum amount that he or she can for the business? Will taking time away from the special talent of vehicle repair to determine business value and find a willing buyer, eventually hurt or negatively impact the day to day ongoing operation and growth of the business?

These questions must be asked of any owner who is about to embark on the process of business valuation and sale. By finding a third party whose specialty is business valuation, marketing and sales, a business owner can focus on the special talent - and truly maximize the return on that business investment.

KEY #4:


As a business owner looking to sell, there are many ways to let potential buyers you intend to sell. However, most of these ways are not confidential enough or powerful enough to generate the maximum number of interested buyers possible. The newspaper may work, but does it reach the intended buyers and is it as wide-spread as possible?

Asking a third party to help market your business is one way to ensure that your business will be exposed to as many buyers as possible. While you focus on your core competencies a third party business sales specialist can actively promote your business confidentially by using media ads, Internet websites, yellow pages, other business organizations. This gives you the advantage of finding the best possible buyer and the best selling price as well. Exposure to the marketplace confidentially is a major key.

KEY #5:


Have you ever thought who will take over your business on short notice? Have you ever wondered where you will find the ideal buyer who will want to take ownership of your precious investment?

This last key is important because it will give you peace of mind. Peace of mind that your faithful customers will be taken care of. Peace of mind that your long time employee relationships will be preserved. The importance here is more of an intangible benefit to your own sense of duty and doing what's right.

In conclusion, much thought and care must go into the sale and succession of your business if you are going to maximize the return on this investment and leave with the peace of mind that you did your best to maximize its potential. Below are some helpful business resources that may be fruitful in assisting you in this important endeavor.

To your success!

David Bryant Sound Business Brokers Your source for expertise in either buying or selling a business.


Association of Washington Business

Thurston County Business Resource Center

Sound Business Brokers

Better Business Bureau

Chamber of Commerce

Dunn & Bradstreet


Laser Monks Office Supply

iBill Business Billing Technology

ExtendaBiz Business Growth Tactics

Woopidoo! Business Success & Finance Tips

ExactTarget Email Marketing Solutions

SCORE (Service Corps of Retired Executives)

SBA (Small Business Administration)

National Business Association

National Federation of Independent Businesses

For further business resources please call Sound Business Brokers for contact information. Note: Sound Business Brokers is not liable or responsible for the actions or outcomes that occur from the providers and resources provided above.

About the author:

David Bryant is a business broker who helps business buyers find a business and sellers sell a business in Washington State.