6 Things To Do When Having Trouble Selling A Business
Finding It Difficult To Sell A Business?
Sometimes it can be extremely challenging to sell a company. But, whether the market is down or there seems to be a lack of interest in your business, there are steps you can take to improve the likelihood of selling your company.
How Are You Having Difficulty Selling Your Business?
There are a variety of reasons you might not be able to sell your business. Out of the bulleted list below, which problem in selling your company seems most relevant to you?
- I can’t find prospective buyers for my business.
- I can’t seem to get interested buyers to close the deal.
- The buyers that are interested can’t afford my business.
Sometimes the difficulty is in finding an interested buyer, but that is not always the case. Below are a few ways to change your strategy when you have a hard time selling your business.
1. Marketing Your Business For Sale
If you cannot find interested buyers for your business, you should consider investing in more marketing. Widening how you market your business can lead to more interested buyers. However, do not just market your business to people within your industry.
Consider marketing your business across multiple locations and industries. Some businesses are interested in doing vertical mergers. Other businesses are interested in widening their market reach in purchasing a business in your location. A wider customer base would help find more potential buyers.
2. Lower The Asking Price Of Your Business
The first and most obvious step to finding interested buyers is lowering the asking price for your business. At a lower price, your business has a better chance of selling quickly. When lowering your asking price for your business, you should do this carefully. Too much of a price drop will result in you not getting paid for the full worth of your business. Based on your business’s valuation, it is best to be advised on how much you should sell your business for.
3. Have Someone Else Negotiate The Sale Of Your Business
May you are not having trouble finding buyers but having trouble closing the deal? Sometimes a business owner can be their own worst enemy. Deep down, we can find it emotionally challenging to part with our company. When we are emotionally tied to our business, it can become challenging to negotiate the sale of our business.
Having someone else negotiate the sale of your business can make sure you get the full worth of your company, as well as selling it to the best buyer.
4. Offer Financing For The Buyer
Offering financing to interested buyers when selling your company is beneficial in multiple ways. First, this will widen the number of buyers that could purchase your company. Second, if an interested buyer pays for your company over time, you will pay fewer taxes. Essentially you will receive more money over time for your business. And when you offer seller financing, buyers feel that you have confidence that they will be able to pay you back and are more likely to take the plunge and purchase your business.
5. Contact A Competitor
When having difficulty finding an interested buyer, you might want to consider contacting one of your competitors. A competitor would be interested in purchasing your business because they know what your business is worth. Selling your business to a competitor is also easier to negotiate because they are familiar with your industry. However, you probably want to have a business broker contact a competitor for you. That way, they don’t have to reveal the identity of your business until the competition has expressed interest and signed a confidentiality agreement. The last thing you want is the word getting out that you are selling your business.
6. Hire A Business Broker
If you have not sold your business on your own, you should definitely contact a business broker to sell your company. While we believe it is the most effective way to sell your business and get the most for your business, it can also solve a lot of these difficulties you are having in trying to sell your business. It can be hard to sell a business, so don’t sell it on your own.
A Business Broker Can Improve Your Marketing
One of the primary things a business broker does when selling your business is market your business. When you hire a business broker, you no longer have to worry about marketing. They take the time to market your business confidentially to interested buyers strategically.
A Business Broker Helps Find Qualified Buyers
When trying to sell your business on your own, you might find a lot of interested buyers. Unfortunately, there are many interested buyers, but very few of them are qualified to purchase your business. A business broker can help save you time and money by qualifying the buyers before they talk with you so that you’re not wasting your time with tire-kickers that don’t have funds available.
A Business Broker Can Help Negotiate The Sale Of Your Business
A business broker is an essential partner in negotiating the sale of your business. As mentioned above, you can be your own worst enemy during the negotiation process. A business broker’s goal is to help sell your company for its full worth. Having a business broker manage the sale of your business can remove you and the emotions that can be a barricade to selling your business.
A Business Broker Can Advise You On How To Sell Your Company
Even business brokers can have difficulty selling certain businesses. Some businesses are just difficult to sell. Because of a business broker’s experience, they can help advise you on the best steps to take. This is essential to selling your business effectively.
Rather than mistakenly lowering the price of your business too soon or negotiating the sale of your business incorrectly, you will have a professional business broker advising you through the sale process. Get help selling your business.