How to be successful in selling your business or why you need a broker!

The Biz Blog

April 13, 2010 by Kendric Foultz

Selling a small business is not easy.  The first thing to acknowledge is that no matter how successful you have been in running your own business you probably don’t know the first thing about what it is going to take to sell your business and get the best price and terms for it.  A seasoned business broker can fairly quickly analyze your situation and let you know just how marketable your business is and what can be done to make it more so.

The next thing you need to do is become emotionally prepared and committed to the process of selling your business.  Up to now, you have been the boss, but now you are going to have to take direction from the broker and deal with the demands of the buyers.  This is not an easy challenge for many owners.  The broker is your partner in this process so you’re going to want someone you can trust.

Lastly, make sure your priorities are in alignment with the marketplace.  If the reason you have decided to sell your business is purely financial then you are in for a tough time.  I have had only one client who thought their business was worth less than was ultimately realized.  During the process you will probably work harder than you ever worked prior to deciding to sell.  In the February issue of Inc. magazine a seller regrets not hiring a broker because he said the process took up 75% of his time over a year period and he still didn't sell the business.

A good broker will be able to paint a picture of how the process will unfold.  He or she can prepare  you so that your expectations will be aligned with the realities of the market and in the end you will be successful in attaining your goal.

How to Sell