When it comes to selling a business, one of the most common questions you hear is “what’s a fair price for all the work and love I’ve put into this business?” While inventory and real estate can be quantified easily, this “sweat equity” can prove more difficult to put a number on.
If you are feeling confused about what the fair market price for your business is, take a chance to read the following tips, they may help you to make a more informed decision, and you just might save a few pennies while you’re at it.
Get a Professional Appraisal
Do no go to market to sell your business without first having a business appraisal expert tell you what they think a fair price is. Although you may have ideas about your maximum and minimum selling price, you may be way off.
In some cases, people seriously overvalue their businesses. These people cannot see past the hard work that they invested, and think that everyone else will put a premium on their time as well.
Others, for one reason or another, undervalue their businesses, leaving them ripe for turnover sharks and financial hardship.
The bottom line is that a business is worth what it is worth. Having the cool, calculating eye of an appraising professional give your business a once over can help you to come to market with the facts. Pricing a business for sale is one of the most important steps in succesfully profiting from the sale of a business.
Don’t Skimp on Advertising
Although you may have developed strong word of mouth support with your customer base over the years, this may not necessarily translate into buyers knocking down your door. Take the extra time and money to make sure that your business is out there.
If you have saturated all selling avenues with your ad, you will have more buyers working towards a deal. And remember, the more potential buyers you have, the better.
In the end, having more advertising and more buyers means that you may eclipse the market value predicted by the professional appraiser.
Keep in Touch
In the end, the most important lesson is to keep deals moving forward. Stay in touch with potential buyers and let them know that you have not forgotten about them. Let every buyer know that he or she is the one you want, no matter how many interested parties you have. |
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Peter Siegel, MBA - BizBen Founder, Author, ConsultantPeter Siegel, MBA is the founder and President of BizBen.com. A nationally recognized author (3 books and a syndicated small business blog) and expert consultant (national SBA small business specialist) on selling and buying businesses, he provides professional assistance to business brokers, agents, and business owners in getting maximum response in their advertising & marketing efforts in regards to selling small to mid-sized businesses. If you are selling a business and need professional assistance utilizing high performance advertising, marketing, and highly effective strategies, or individual customization with your BizBen Power Search options in buying a California business, you can reach him at 866-270-6278. |
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