Starting, maintaining, and owning a business is a lot of work, but it is also very fulfilling. However, there may eventually come a day when you decide that selling your business is the best option for you. The average business owner will only do this once in their lifetime, if at all, so the process is not well known to most people. It is actually much more complex than most people assume and the details can make it tricky. Read on for the three most commonly believed myths about selling your business and one big truth.
Myth 1 – DIY
Many business owners assume they don’t need professional assistance to sell their business, especially when that business involves selling things. Just because you’re a pro at selling your product or service, it doesn’t mean you will be a pro at selling a business. One of the key issues at stake with selling a business is confidentiality. If you’re looking for buyers, everyone will know that it is your business for sale, whereas a broker can float the option without ever naming your business directly. Having people know you’re selling early in the process can hurt your relationship with vendors, clients, and even lenders. Finally, do you honestly think you have time to both sell your business and run your business? The simple answer is usually “no.”
Myth 2 – Knowing Worth
Critically and objectively determining the worth of your business is very difficult if not impossible for most people. Many people feel the need to include a value for their “sweat equity,” which is not something that can really be quantified for potential buyers or lenders. A professional broker can perform a valuation on your business that takes into account various aspects of the market that you will not have knowledge of.
Myth 3 – It’s Like Selling A House
Selling a business is nothing like selling a house. With a house, there is no need for confidentiality, no SWOT analysis, and no needed transition time. With a business, there is all of that and more. Your buyers need to be pre-qualified and evaluated, you need to build in a lot of time for planning and then a few months after the sale for transition time while you help the new buyer settle in. The entire process is more complex (and much longer) than anything else you’ve ever sold.
Truth – This Work Requires A Professional
The market for selling a business is unique; therefore, the sales process is going to be different than it would be for any other commodity. There is a lot of planning that goes into the process, and having an objective, knowledgeable third party (your broker) to help you through it is vital.
Sell With Atlantic Business Brokerage, Inc.
At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.