Smart business people don’t just know how to run a business – they also know how to sell a business and move on when needed. There are many different reasons one could have for selling a business. Whatever reason you may have to sell your business in Bedford, TX, you need to know that there is a wrong way to go about it and a right way to go about it.
Now, most people simply focus on the price. If you sell it at a high enough price, it is a good deal, otherwise it is a bad deal. While this is true, the way people interpret this is very wrong.
Understanding the nuances of selling a business in Bedford, TX
People have this misguided notion that the price a business gets depends totally on how well they negotiate. It is easy to see where this notion comes from – you see it in movies and TV shows all the time. The genius salesperson who can sell anything and convince anyone to buy anything. People think that’s what they need – just a good negotiator while they haggle with the buyer.
The reality couldn’t be more different. Yes, you do need a good negotiator, but that’s not all it takes. This tactic works if you are selling a used car or anything small – you can indeed increase the price a lot by talking to the buyer the right way.
The reason it doesn’t work for selling a business is that in this process the negotiation is the merely the last stage of the sale. When you sell something small, the person comes in, looks at the product you are selling, tells you what they will offer for it, and the sale goes through if you are satisfied with the price. The whole process takes a day or two, and the decision by the buyer is made when they look at the product you are selling and check its quality and condition.
Things work differently when you try to sell a business in Bedford, TX. Buying a business is a major gamble for the buyer. They aren’t just looking at a thing they can own, they are looking for a business opportunity.
What Business Brokers Do
Business brokers end up getting you a much better deal than you could have otherwise because they know how to sell a business in Bedford, TX. They know the ins and outs of the whole process, they know what the buyer is looking for, and more importantly, they know what type of buyer would be perfect for your business. Let’s look at these factors in detail.
Business brokers show the true potential of a business
Here’s the deal – there are a lot of people who are interested in a small business for sale. Anyone who is buying your business will be interested in the potential your business has for them. Now, if you are a normal seller you will simply tell the buyer how much money you have been able to make from the business, and base the potential on that. This is a major mistake, because it sets the price too low, and attracts the wrong type of buyer.
Think of it this way: the amount of money you are earning from a business and the amount of money someone else earns from a business will not be equal. Two people can open burger joints right next to each other in Bedford, TX and get very different sales figures for their businesses. This is where a business broker will help you out.
Business brokers are experts at estimating the potential of your business. A business broker will be able to look at how much businesses of your type earn, and will be able to get a better estimation for that. That’s not all – they will even be able to look at trends in the future that may make your business valuable, and will factor that into the price as well.
Business brokers use estimates and statistics
Another reason that business brokers are able to get such better rates for businesses is that they use facts and figures in their approach. A normal business owner will try to convince the buyer that their business has a lot of potential and is thus a good business to buy. A business broker in Bedford, TX will not try to convince them – they will show the buyer the facts and figures which show the value of the business. They will pull out figures like the average earning of your type of business, the loyal clientele you’ve built, the future potential due to changing trends, and much more. This makes the buyers much more comfortable with paying a higher amount for your business.
Getting the right buyer
It isn’t just about making the right proposition, it is also about getting the right buyer for your business. If you have a small business for sale you need someone who will be able to make the most out of it. Let’s say that you run a sandwich shop which you now want to sell. You can try selling it to someone who has never run a business. You can tell them this is their business opportunity to be an entrepreneur, and you will be able to persuade them eventually. They wouldn’t pay you a lot of money but they will pay you a fair price.
Now, imagine that you instead went to someone in Bedford, TX who was already running a sandwich shop. You can tell him/her that this is a great opportunity to expand their business and this may be how they can start franchising their restaurant and become a national chain. The potential earnings for this buyer are much more than for the first time entrepreneurs, and they will thus be willing to pay more for your business.
It is the little nuances like these which determine the price that you will get for your business in Bedford, TX. Selling a business is not a small task – we highly recommend you get the services of an experienced business broker like Kirksey Business Brokers. They will ensure that you get the best possible price for your business.