When it comes to buying a food related business, buyers have many options. If you look through the business for sale listings you will find any number of specialty restaurants, coffee shops, food franchises and more. As a Deli owner looking to sell your business, you will be faced with some competition from other companies that are also on the market.
The key to successfully selling your deli or any other business for that matter is preparation. Being prepared to sell your business could mean the difference between closing a deal and not.
With BizBen offering many deli restaurants for sale online, here are 5 tips to help you get prepared to sell your deli restaurant business:
Tip #1 - Understand Your Position In The Market
Many buyers do not understand the difference between a true delicatessen and a sandwich shop. I mention this because as an owner it is important for you to know your position in the market. Not only are you competing with other delis for sale, but you are also competing with other food businesses and some buyers may not understand what makes your business different than others on the market. With that, be sure to provide potential buyers with a detailed description of your business that makes it clear that they are getting a Deli, not a sandwich shop.
Tip #2 - Help With Financing
In today's business for sale market, it is pretty common for owners to provide some sort of business purchase financing when they sell their company. Lending institutions like to see it as a part of the deal and offering to hold a portion of the loan helps the business buyer because they don't have to qualify for as much traditional financing.
To start, think about how much of the note you are comfortable carrying. Work with a professional business broker to help you structure a deal you are comfortable with. You may also want to involve your Accountant and Attorney in this process. Next, go to your lending institution and get your business pre-approved for financing. Getting pre-approved will also assist the buyer in obtaining business purchase financing because your business will gain instant credibility when the buyer's lending institution sees the business has already been reviewed by another lender.
Tip # 3 - Provide Training
Be prepared to provide training to the new owner and highlight your willingness to do this in the documents you provide potential buyers. For many new business owners, training and learning the ropes of the business they want to buy is a big selling feature. For this reason, many Entrepreneurs who are first time business buyers opt to purchase a franchise because they know they will receive the training they need to be successful in running the company. Independent business owners can compete with franchises in the training area by their willingness to train the new owner.
Offering training is not only a benefit to the new owner, but also a benefit to you, especially if you are providing financing. If the new owner has the training to successfully run the business, they are less likely to fail and go out of business. If you are holding a portion of the loan, this insures you will be repaid the money owed to you.
Tip #4 - Focus On What Makes You Different Than Your Competitors
There is a lot of competition in the food industry. You are not only competing with other Delis but other restaurants in general. So, when it comes to your business, it is important that you tell potential buyers what makes your company different and better than some of the other options on the market. Many Delis do a big lunch business and have a very loyal customer base during that meal time. Others provide catering services for corporate functions and parties which sets them apart from others. Regardless of what your unique selling feature is, be sure you point it out to potential buyers.
#5 - Prepare Your Deli To Be Sold
When you are putting your deli business on the market to be sold you MUST make sure it is in great physical condition. No one wants to eat in a dirty restaurant and a potential owner certainly doesn't want to buy one. With that, take the time to do a thorough cleaning of the facility. If you don't have time, hire a professional. The cost will pay for itself in the end. I also suggest doing minor repairs and "face lift" type projects like adding a coat of paint and updating the small details that can make a big impact when a buyer sees your Deli for the first time.
About The Author: Peter Siegel, MBA is the Founder & Advisor (ProBuy & ProSell Programs) at BizBen.com and BizBenNetwork. He works with potential business buyers, business sellers, brokers, agents, investors, & advisors. Reach him direct at 866-270-6278 to discuss strategies regarding buying, selling, (or financing a puchase of) small to mid-sized businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Brad Steinberg, Broker - Laundromat Specialists
PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.
|AJ Rana - Business Broker, San Francisco Bay Area
Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.
|William Park, Business Broker - Southern California
Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.
|Harry Sidhu, CBB, Broker - SF Bay Area, Central Valley, SAC Region
Assisting both sellers and buyers of businesses - dealing mainly with Liquor Stores, Grocery Markets, Gas Stations, Smoke Shops, Restaurant Related, Retail Related, Service Related. Serving SF Bay Area, North Bay, Sacramento area. Call Harry Sidhu, CBB for assistance at 510-366-6130.
|Jeff Back, Broker: Restaurant Specialist - SF Bay Area
J. Back & Associates Restaurant Real Estate was founded in 1988 as the first bay area real estate company to specialize exclusively in restaurant real estate. I am the past President of Charley Browns restaurants and have been involved in the restaurant business for over 35 years. 925-736-8200.
|Helen Yoo: Escrow & Bulk Sale Services - Southern California
New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
|Bob Hughes: Business Broker, Palm Springs Area
Bob Hughes is a business broker & is President of Hughes Properties. Hughes has a wide variety of entrepreneurial experience with the personal ownership & sale of numerous businesses, and has sold over 200 small & mid-sized businesses in the Riverside County marketplace. Call Bob at 760-323-8311.
|Jeff Sacher, Business Broker - North Bay Restaurant, Retail Specialist
Jeff is a leader in business brokering in the North Bay. Since joining Santa Rosa Business And Commercial in 1999 he has assisted Buyers and Sellers in over 200 business sales and acquisitions. Jeff provides other services for his clients as well. Reach Jeff and his team at 707-888-4972.
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