You’ve made the decision to sell your business. Congrats! There’s no doubt that a lot of stress is wrapped up in deciding to sell, but there’s also a great deal of excitement. As a result, it can be very easy, especially for first-time sellers, to forget that selling a business is a multistep process, requiring careful planning to maximize your potential returns.
We’ve got three suggestions to help you navigate this life-changing decision and to ensure that the experience is a fun and profitable one. After all, it’s important to set yourself up for success when it comes to selling your business!
Tip No. 1—Don’t neglect your business during the process.
Making the decision to sell your business doesn’t mean that it is sold. You need that business to continue generating a profit—not only for your financial benefit as the owner but also to entice a new owner. Selling your business is an opportunity to generate a return on the time and money you’ve invested.
Neglecting the business during the sales process is a costly mistake you don’t want to make. Why? If your business’s revenue declines during this time, the buyer could ask for a lower price.
You can help avoid this outcome by working with an experienced broker rather than taking the DIY route. Transworld Business Advisors of Minnesota provide insights and expertise in terms of advertising and marketing strategy. What’s more, Transworld Minnesota has access to an exclusive network of thousands of buyers. This type of expert assistance ensures that you maximize the return on your business investment to fund your next adventure, whether that’s exploring a new business endeavor or starting some other new chapter.
But that’s not all an experienced business advisor from Transworld Minnesota can help with when it comes to selling your business. Our experts guide you in creating an exit strategy, preparing your business for sale, determining the value of your business and, ultimately, finding quality buyers.
Tip No. 2—Keep your sale confidential.
Many first-time sellers may think the best way to sell their business is to advertise that your business is for sale. The reality is spreading the news via word of mouth can trigger many negative reactions from your clients and suppliers. This can add a lot of unneeded stress for you. It can even result in some unwanted attention towards your business venture.
So, how do you get the word out to potential buyers? Transworld Business Advisors of Minnesota aggressively markets and advertises your business to a pool of potential buyers, while maintaining your anonymity. This allows your sale to be protected so you can maintain the value of your business. As a seller, you simply want a seamless, expedited sale that gets you a fair asking price. Transworld Business Advisors of Minnesota can help achieve that goal.
Tip No. 3—Take the first buyer who inquires but necessarily the first offer.
Now hear us out. This piece of advice may sound controversial, but, during our years of experience, we’ve learned that the first buyer is often the right one. Here’s why:
- Many buyers like to use a negotiating technique called “extreme anchoring.” This strategy is about trying to start at a low price to see if they can scare you into lowering your selling price. They’re testing the waters. Basically, the buyer’s goal is to make you, the seller, uncomfortable and nervous that your asking price is too high.
- Don’t get offended by the first-time offer. It’s only human to wonder if a better offer is out there waiting in the wings. As a result, many sellers don’t like to take the first offer. Realistically, there is a good chance that the first offer is the best offer.
If you opt to work with a business advisor like Transworld Minnesota, often the first buyer has already been vetted. The advisor may have even done a previous deal with the buyer and can vouch for them. You can learn more by listening to our podcast, where we provide more information about this topic.
While it is possible to make parallels between selling a business and selling a house, the two can be radically different experiences. Before making this life-changing decision, it’s important that you plan ahead and ensure you have the right people working on your side.
At Transworld Minnesota, our advisors are some of the most sophisticated and experienced in the industry. Our service, dedication and drive are your guarantee that if you are prepared to sell your company, we are ready to sell it for you. Schedule a free consultation today to get started.