Strong Selling Points
Let Your Strengths Work for You
"Independent business owner" is a phrase with two meanings.
Of course, it means being the owner of an independent business. But another
way to look at "independent business owner" is to let this
phrase define the very personality of the person at the helm. Independent.
Confident. Self-assured. Strong-willed. These are vital entrepreneurial
attributes, but, ironically, they can sometimes work against the business
owner when it comes time to sell.
Since business owners are the type who know about selling -- either
products or services-- and about making deals -- haven't they had to
cope with suppliers, customers, and competitors throughout their business
careers? -- it's not surprising that owners approach selling their businesses
with these tried-and-true tactics and ideas. Sellers who have spent years
building a business are often unaware of how completely different the
process of selling a business is.
Savvy sellers, realizing the importance of a selling approach equal
to this very important task, will depend on the guidance of a business
intermediary. With professional guidance, sellers can benefit from their
personal strengths instead of letting them get in the way of the selling
process. The following "strong" selling points are signposts
on the road leading to a successful transaction.
Price Your Business To Sell
Sellers are good "business people;" they naturally are after the
best possible price for their business. Realistic pricing is perhaps the most
important factor in selling from a point of strength. Understanding the marketplace,
up-to-the-minute and not some high mark just past or in the possible future,
The pricing of a business, different from the simpler means of valuing
based on goods or services, depends on industry-tested valuation techniques,
with intangibles incorporated to ensure that the business will not be
underpriced. The price of a business is arrived at by a variety of factors,
one of the chief of which is the intensity of a buyer's interest in a
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Know Your Buyer
The seller, although good at "psyching out" customers and vendors,
may not be as adept at sizing up potential buyers. Some buyers are professional
window-shoppers; talking a good game but never really ready to play. There
are also the buyers who would play ball -- if they only knew where the action
was! First locating and then qualifying buyers is a key function of business
brokers. They will use computerized data bases, professional associations and
other networks nationally and internationally -- all to increase the chances
of selling a business at top value.
In addition, the business broker will determine the right buyer for
the right business, focusing on those prospects who are financially qualified
as well as genuinely (or potentially) interested in the business for
sale. As part of qualifying buyers, to take the "fear" out
of the likely need for seller financing, the business broker will assess
the ability of a particular buyer to run a business successfully. This
invaluable work by the broker not only locates the best buyers, it also
frees the seller to concentrate on his role in the selling process.
Prepare Your Business for Sale
In addition to the obvious need for the business to appear clean and
cared-for, there are important steps the seller must take in advance
of putting the business on the market. In most cases, a business will
sell based on the numbers. Your business broker will help you create
a clear financial picture -- in timely fashion -- and to prepare statements
suitable for presentation to a prospective buyer. Remember that buyers
may be willing to buy potential, but they don't want to pay for it. In
fact, sellers should be open to about all aspects of the business that
might affect the sale; otherwise, once the real facts are revealed, the
deal may self-destruct.
Business owners are accustomed to coping with paperwork, but few have
had exposure to the specialized contracts and forms required both before
and during the selling process. The business broker, an expert at transaction
details, will help guard against delays, problems, and premature (or
inappropriate) disclosure of information.
Maintain Normal Operations
Another vital activity for the seller is to keep on top of the day-to-day
running of the business. When a business intermediary is on hand to focus
on the marketing of the business, the seller can focus on keeping daily
operations on-target. Sellers are "people people," and may have visions of
wooing buyers with their great presentation of the business. Even if this
were to happen, these sellers fail to visualize the number of buyers they
would have to "woo-and-win" if handling the sale on their own.
An adjunct to maintaining the status quo is the important task of maintaining
confidentiality. Until a purchase-and-sale agreement has been signed, most
sellers do not want to disturb (or jeopardize) the normal interaction with
customers and employees; nor do they want to alert the competition. A business
broker helps by using nonspecific descriptions of the business, requiring
signed confidentiality agreements, and performing a careful screening of
To keep the sale of your business on 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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