If you’re looking to sell your small business without a broker, you have to be your own salesperson. Small business brokers can help you sell your business, but sometimes it makes sense to do a buyout agreement alone. As helpful as sales professionals can be, there are times when selling your business yourself can be the better option. You may want to save money on commission costs, or you might have decided that the brokers you met were not a good fit. Without the assistance of small business brokers in making a sale, you are going to have to channel qualities that all of the best business brokers demonstrate. The following traits are going to be crucial if you decide to sell without the aid of small business brokers.
Learn The Sales Cycle
Small business brokers use the sales cycle to conceptualize the process of making a sale. Review each stage of the sales cycle as a reminder that each step is as important as the others. When selling a business, especially for the first time, it may seem as if it all comes down to finding the best leads or making a perfect pitch. In fact, each stage is equally important, and neglecting any one of them can make the process of selling without small business brokers much harder.
Pitch Your Financials
The best small business brokers look at a company’s financial statements and come up with a pitch that highlights the business’s strengths. As a business owner looking to sell, you are more aware than anybody else of your company’s strengths and flaws. Successful business brokers will find a way to spin the company’s strengths into a successful pitch while being realistic about a company’s potential difficulties. Rather than ignoring a company’s flaws, good small business brokers are honest about a company’s difficulties. Many of a company’s hurdles can be spun into a pitch that gives potential buyers an idea of how they might improve aspects of your business. This honesty can be refreshing for buyers, so keep this important characteristic of small business brokers in mind when making your pitch.
Don’t Be Overconfident
Overconfidence can be a hindrance for small business brokers, and you will find that the same goes for you when selling your company. Potential buyers are well aware that they are making a big and potentially risky investment. Coming off as too forward can be a warning sign that you are looking to unload a risky business. Try to be objective and don’t overvalue your business. Successful small business brokers will work with you to establish a reasonable asking price to start with. When going it alone, you need to check your inclination to inflate your price to try and make the most money. Keeping your confidence in check will help you work with potential buyers in the same way that the best small business brokers do when making a sale.
Small business brokers know how to protect their clients. When selling your own business, you have to make sure to protect yourself. Familiarize yourself with the confidentiality agreements that small business brokers use to protect their clients’ business information so that your company remains secure. If potential buyers decide not to complete the purchase, you should still know what is my business worth and that it can continue to operate smoothly. Small business brokers can keep their clients’ information secure when a business is on the market, and you must be the same way when trying to sell a small business by yourself.
Finally, remember that small business brokers are constantly networking to find potential buyers and sellers. If you’ve owned your business for a long time, you might already know many people in your industry. Channel your inner salesperson and try to make connections with as many people as possible. Contact local lawyers and accountants who can assist with the details of your sale. Without the aid of small business brokers, you are going to have to do this networking yourself. In the end it can pay off by saving you a commission fee.
You’re making a big decision by deciding to sell your business without the aid of small business brokers. Become the best salesperson you can be by channeling the traits of a small business broker to make the sale. Familiarize yourself with the sales cycle to try and get in the mind of a broker. Learn how to make a pitch and spin your company’s flaws into potential areas for growth. Be confidential to protect yourself and your company while trying to make a sale. And finally, network constantly so that you’re able to meet professionals and potential buyers who can get you to the closing stage. Small business brokers do these things constantly in their work. By channeling the traits of the best small business brokers, you can be your own salesperson and save a lot of money.