When you’re looking into selling your business, there are a ton of factors to consider. Proper business valuation is huge – going too high or too low can both have enormous financial consequences if you get it wrong. There’s also the issue of any outstanding debts, expenses or other finances to complete before any sale can be possible.
In many cases, though, the toughest part of this process will be the first one most people think of: Finding an adequate buyer at a fair price. It doesn’t matter how perfectly your ducks are ordered in a row if you can’t market yourself to the proper people and find anyone interested in buying. Here are some tips for targeting your business sale to the right parties.
Define Your Likely Buyers
If you aren’t getting any bites as you try to sell your business, it could be because you aren’t putting it in front of the right eyes. You need to consider who is most likely to buy your business, based on a few factors: Finances, similar business purchases, individual or group approaches and more.
Are there specific financial qualifications a buyer needs to purchase your business, or licenses and credentials? Is your business likely to be attractive to individual investors, or only to larger groups? These are the kinds of questions you need to be asking yourself.
How to Reach Those Buyers?
Once you’ve found your targets, you have to figure out the best ways to hit them. Factors that are important here will include location, region, credentials, business strategies and public interfacing, among several others. Many sales of small businesses are made in the same market area as the buyer, and these are called “intramarket transactions” – if you run a small business, it’s often best to target most of your efforts locally.
From here, you’re ready to get your advertising started. You match your potential buyer descriptions and characteristics to real buyers, either inside or outside your area. Know that in these modern times, online marketing is a huge vehicle – nine out of ten potential buyers shop online listings, even if they’re already working with an independent broker. Make sure you’re aware of the areas your potential buyers target.
At Utah Business Consultants, we specialize in every step of the exit planning process. Our experts are standing by to assist you.