Congratulations on making the decision to sell your business! It’s understandable that this process can be stressful, but it’s also filled with excitement. However, it’s important not to overlook the fact that selling a business is a complex and multi-step process. Careful planning is crucial to ensure you maximize your potential returns, especially for first-time sellers.
I have three valuable suggestions to guide you through this life-changing decision and to assure you that the experience is both enjoyable and lucrative. After all, it is crucial to position yourself for success when it comes to selling your business!
Tip No. 1—Don’t neglect your business during the process.
Making the decision to sell your business doesn’t mean that it is sold. Ensuring your business remains profitable is essential, not just for your own financial gain as the owner, but also to attract potential buyers. Selling your business presents an opportunity to yield a return on the time and money you’ve dedicated to it.
Neglecting the business during the sales process is a costly mistake you don’t want to make. Why? Because if your business experiences a decline in revenue during this period, the buyer might request a reduced price and/or the lender funding the deal may need to reject the loan.
To avoid such an outcome, it is advisable to collaborate with a seasoned broker instead of opting for the do-it-yourself approach. John Geiwitz, The Jacksonville Business Broker offers invaluable insights and expertise in terms of confidential advertising and marketing strategies. Moreover, John Geiwitz has an extensive network of thousands of buyers, providing exclusive access. This kind of expert guidance ensures that you maximize your business investment return, enabling you to finance your next adventure, whether it be embarking on a new business endeavor or starting a fresh chapter in your life.
An experienced business advisor can assist you with more than just selling your business. John provides guidance in developing an exit strategy, preparing your business for sale, assessing its value, and ultimately connecting you with high-quality buyers.
Tip No. 2—Keep your sale confidential.
Many first-time sellers may believe that the most effective approach to selling their business is to openly advertise its availability. However, the truth is that spreading this news through word of mouth can potentially elicit negative reactions from both clients and suppliers. This could introduce unnecessary stress and even attract unwanted attention to your business venture and actually diminish its value.
To effectively reach potential buyers, John Geiwitz, The Jacksonville Business Broker employs a proactive approach in marketing and advertising your business. We prioritize maintaining your anonymity throughout the process, ensuring the protection of your sale and the preservation of your business’s value. As a seller, your ultimate goal is a seamless and expedited sale at the highest price possible. With the assistance of John, you can confidently achieve that objective.
Tip No. 3—The first buyer is often the best buyer even if the offer is low.
More often than not, the initial buyer tends to be the most suitable one. Here’s why:
- Many buyers like to use a negotiating technique called “extreme anchoring.” This strategy involves attempting to initiate negotiations with a low price in order to gauge your reaction and potentially pressure you into reducing your selling price. Essentially, the buyer’s objective is to make you, the seller, feel uneasy and uncertain about the perceived highness of your asking price.
- Don’t get offended by the first-time offer. It’s natural for us to ponder whether a superior offer awaits. Consequently, numerous sellers are hesitant to negotiate on the initial offer. In reality, there is a high likelihood that the first offer is often indeed the most advantageous.
If you decide to work with a business advisor, often the first buyer has already been vetted. The advisor may have even done a previous deal with the buyer and can vouch for them.
Selling a business and selling a house may seem similar, but they are vastly different undertakings. Before embarking on this life-altering decision, it is crucial to meticulously plan ahead and enlist the assistance of knowledgeable professionals who can guide you through the process.
John Geiwitz, The Jacksonville Business Broker is one of the most experienced in the industry. His service, dedication and drive are your guarantee that if you are prepared to sell your company, he is ready to sell it for you. Schedule a free consultation today to get started.