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Last Updated on: February 15, 2020 by Joseph Muriithi
While being an independent business owner means being the “owner” of a business that is independent, it might also have personal attribution meaning to it when it comes to selling a business. Consider an independent business owner as a phrase that defines the personality of the owner in question. Being independent comes with reasonable aspects of self-assurance, confidence, self-reliance, able to, and strong will. Although all these aspects form a vital component of a successful entrepreneur, they can at times work against a business owner when it comes selling their businesses. Being Independent a business setting creates an “I am able to do it” feeling that ironically does not always work when it comes to selling a business.
Business owners are the type of people who, let’s face it….well, know it all. They know everything about selling services and products, they know their way into the hearts of the customers and buyers and most importantly they know how to make successful deals. They can do this while coping well with suppliers, competitors, and consumers during the entirety of their business careers. When they are selling their businesses, they tend to bring their well-matured business tactics and of course working ideas into the game. Having spent years of their careers using their tactics and ideas successfully they often do not realize how completely different the process of selling a business is when compared to any other kind of sale.
Business owners who realize how different the process of selling a business is will depend on the guidance of an intermediary. Professional guidance from Business brokers and other intermediaries enable sellers to benefit from their successful business skills as strengths that pave way for a smooth selling process. The following strengths “selling points” are indicators of to be a successful selling transaction.
Pricing for a sale
Being good business people, sellers will naturally be inclined to price their products and services at the best possible price a factor that should be considered when pricing a business. A price mark that is set to for a product, service or business should always bear a realistic approach that ensures a sale is achieved. A realistic approach is the understanding of the marketplace at current conditions not just a mark of the past or projected future is the key to pricing a business for a sale.
Pricing goods and services are based upon simple tangible factors with central conditions, however, pricing a business depends on realistic market parameters and industry tested valuation methods that incorporate intangible factors without any neither controllable nor central conditions to be met. These evaluations ensure that a price marked for a business reflects real market parameters and also other non-controllable surge parameters. For instance, a price marked for a business can be subject to the intensity of buyer’s interest towards a particular business and at times price may fluctuate heavily due to this phenomena.
Knowing your buyer
A business owner “seller” may know how to deal with customers but not so adept at sizing up customers. Some business buyers are professional window shopper with other intents other than buying and others are real buyers but do not know how to play the game. Business brokers come in with the ability to locate and qualify buyers using computerized databases, leads through association and professional networks a key to increasing the chances of selling a business for the right value.
Other professional abilities of the business brokers are the ability to determine the right buyer for a certain business. Determining financially qualified buyers and genuine interest in the business on sale makes selling a business easy.
Preparing Your Business for a Sale
While it is obvious that a business needs to appear well maintained, more effort should be emphasized on factors such as numbers and normal operations. In most cases, a business will sell based on figures and numbers presented. Business plans will help you paint a clear financial picture and preparation of statements that will be suitable to present your image to a prospective buyer. Another aspect that should be considered is the need to be open and straightforward about aspects that affect and might affect the business to curb instances of a deal going sideways after real facts get revealed.
As a business owner looking to sell your business you should be aware of the paperwork that comes with it. Various specialized contracts, forms, and documents come into play before and during the selling process and a business broker is well equipped for this. Being an expert at it, a business broker will guide you through the transaction details and requirements and help curb delays, problems and possible infringement.
Another vital aspect to prepare your business for a sale is the day-to-day running of the business. When a business broker is at play focusing on the sale of the business, the seller can focus on continued operations of the business an aspect that creates the right image to the buyer and cushions a business from mismanagement during this process.
Maintaining a status quo during the process of selling a business is important. You don’t want to disturb your customers, employees, and stakeholders causing interruption to normal operations nor do you want to alert your competition. A business broker helps you in this by having a selling process that continues in the background. This process is kept confidential by using non-specific descriptions that require signed confidentiality agreements and screening processes of all prospective buyers.
To keep the sale of your business on a firm ground, be sure that your “strengths” as an independent business owner aren’t actually weakening the sale. Using these key selling points along with the expertise of a business intermediary will keep the process going strong.
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