In the coming months, we will cover some of the most common myths that business owners have when they think about listing their business for sale. This month, we want to talk about the “do-it-yourself” myth.
Because you have owned your business for so many years and potentially worked in your industry even longer, you may very well feel like you are the best agent to sell your business once you are ready to leave it.
You’re not alone. Many owners believe they know how to sell their business. Because they have been the key salesperson for their company, they feel that either they are the best person to handle its sale to upstart entrepreneurs, have the relationships to offload to a competitor or feel the emotional attachment and thus the obligation to sell it themselves;
Selling your business, however, is not like selling a product or service. Leaving aside the emotion (which may see you demand a higher price than what the market dictates because of the ties to your company) or need for expediting the sale (which could mean you selling lower than you could get), there are other facets that come into play which will make you not the best person to lead the sale of your business.
These factors include:
Confidentiality is lost – It is extremely possible that in the process of entertaining a customer or client, most likely accidentally, that you will remark that your business is going up for sale. Word can spread quickly in this instance and you may lose clientele who ready themselves for a change in ownership (and perceived change in excellent service), or start a sense of fear among employees that their jobs are at risk.
Time for sale – Let’s face facts. Business ownership is not an eight hour job at the best of times; so is there any benefit to lengthening your hours of work by leading the sales charge? Or, to put it another way, do you really have the time to run your business and compile marketing materials, advertise, screen buyers, give tours and facilitate due diligence? Industry statistics suggest fifty (50) buyers inquire about a business before it is sold, and only 5% of buyers actually wind up buying a business. There are a lot of tire-kickers out there!
If you’re starting to see that a self sale of your business isn’t the best direction, then it’s time to call in the experts. We know that selling a business is never an easy process, which is why we, at Beal Business Brokers and Advisors, are ready to step in and help. We have helped business owners across Winnipeg and Manitoba put their businesses up for sale and guide them through transactions through to the final handshake (and beyond where needed).
So if you need help selling your business, call 204.478.7266 x110 or fill out our contact form to see how we can help you.