The House or Your Business… The Selling Tactics are Similar
Throughout my life I’ve seen many different articles on owning your own home. The statistics show that Americans change homes once in every 7 years on average. What fascinates me is not the “how” of this change, but the “why”. It appears that for your typical American, a change of residence is made not because it is necessary, but simply because they can. With the right financial situation, change can make their life better or simply supply a change to keep things interesting in their life. I’ve discovered that there are parallels between this mindset and business ownership. There is a new standard for business in which a founder may start one company, take it to its potential and then sell and move on to bigger and brighter opportunities. Why do they do this? For the same reasons as homeowners: they have all of the tools they need, the potential is there and the time is right.
It is a blessing to live in a place flavored by capitalism. It’s our choice to purchase or to sell. Just as with real estate, companies are bought by a large variety of purchasers. If you’re searching for an upscale penthouse, or a humble cottage, you have a world of options. In business nowadays, the same mentality exists and flourishes. From a world-wide franchise to a mom-and-pop eatery, you can have your pick at the business buffet. The real challenge is not for buyers but for sellers. Similar to real estate, sellers of businesses must groom and nit-pick their product so that it sells at its potential. The selling points of business are found in potential profit immediately and in the future, absence of heavy competition, the industry wherein it resides, and the possibility of capital growth.
The Right Time
It would be a dream to make a good sale on your house during a period of heavy competition, with an upbeat economy, and rates of interest that have never been lower. You can’t always tell the tide when it’s allowed to roll in, but you sure can jockey for a position that takes best advantage when the moment comes. How? By patiently waiting to sell until the year end operating data shows great bounds in company profits. Or by waiting to show that new changes you’ve implemented increase company profits. Or by reducing potentially negative factors like low morale or unpaid liabilities before making the move to sell.
Selling a house or a business are two of the most important deals you can make. In either scenario professional assistance is shown to greatly improve outcomes in terms of profit maximization and migraine minimization. Just like you would never dream of performing open-heart surgery on yourself, utilize an available and knowledgeable group of business professionals (CPA, Lawyer, Business Broker) to get your deal done right.
Owners of companies are more alike with homeowners then they may realize. They are both constantly vending a very important product in two very similar markets. Some for a change of pace, others are ready to retire, and others for reasons known only to them. At the end of the day everyone should maximize results in their sales opportunities. Why? Because they can, and it’s what we do here in America.