A 2007 Small Business Wish List

After posting my observations about small business trends in 2006, I turn my attention to the new year. Here's what I hope to see this new year pertaining to small businesses.

Small Business Wish List for 2007

 

• More professionalism from business brokers. Since there is no government oversight or special licensing required keeps the barrier to entry too low. There are many professional business brokers but too many are not.
• More cooperation between business brokers on business listings. I wish more business brokers would cooperate on business for sale listings.
• More preparation from people who want to sell their businesses. Small business owners can be negligent when keeping their books. It's important that there is complete financial information available for a potential buyer before you put your business on the market.

One of the trends that most concerns me at the beginning of a new year is the migration of real estate agents to selling businesses. As the housing market softens this has become more appealing.

There are many parts of selling a small business that require specialized training or experience. For example, you can't put a "for sale" sign on a business. The business sale is confidential, otherwise it can jeopardize a potential sale, the existing business, or business relationships.

The article: How to Find a Business Broker to Sell Your Small Business has tips on choosing a professional business broker to work with. If the broker is actively advertising on BizBen you know they are willing to advertise your business for sale. Effective advertising, especially in the first month on the market is essential.

California Association of Business Brokers offers training for new business brokers. However, the best training is to have been a small business buyer or seller yourself. Another resource is a book I wrote based on over 15 years working with selling businesses either with a broker or yourself. It's called, "Selling a California Business - The Ultimate Guide for California Business Owners".

Please leave your comment below to add your wishes for buyers or sellers of small businesses for this coming year.

Posted on December 26, 2009  |   Email This Blog Post   |   Print This Blog Post