A major part of selling your business is getting the word out.  After all, the more people that know your business is for sale, the better off you’ll be.  In Bob House’s recent article, “How to Create an Effective Business for Sale Ad and Ensure It Gets the Best Result,” House gives readers an assortment of tips that he believes will help sellers attract higher offers from real buyers.

Getting the Word Out

As House wisely points out, many buyers wait until the last second to dive in and create a good sales ad.  In fact, many buyers fail to grasp the real importance of creating a quality and compelling advertisement.  Imagine creating a good sales ad like you would going fishing with a group of friends.  The more friends you have on your fishing trip, the greater the odds that someone catches a fish.  In much the same way, the more people who know you are selling your business, the greater the chances that you’ll get some serious “bites.”

Tips for Receiving More Attention 

House has five key tips for attracting more attention from prospective buyers via your sales ad.  At the top of the list is to be descriptive.  Your sales ad should give an excellent description of your business and its unique features.  As House notes, you want to “paint a clear picture.”  In other words, now is not the time for mystery.  You want prospective buyers to have a very clear idea of what kind of business they could possibly buy.

Headlines Count

Secondly, you should have a great headline.  People have always skimmed, but the rise of the Internet has taken skimming to a whole new level.  Your sales ad should have a very engaging and interesting headline.  You want to capture people’s attention.  A good place to start is by determining what your business’s best feature is and emphasizing that feature in your headline.

Incorporate Top-Notch Images

Third, the old saying that a picture is worth a thousand words absolutely applies to selling a business.  Just as a great headline will capture people’s attention, the same holds true for a great picture.  Consider having a professional photographer take the photo, as he or she may have tips to make your business look its best that you may simply not know.

Your Financials

Fourth, your ad should definitely include key financials.  Any serious buyer will be very concerned, if not obsessed, with your financials.  Information such as cash flow and income statements are a good idea as may potential buyers focus their business searches around key financial metrics.

Don’t Forget the Final Step

Finally, if there has ever been a time in your life to proofread, this is the time.  In fact, you should consider hiring a proofreader to look over your ad for grammar and spelling mistakes.  As House notes, you want prospective buyers to realize that you are attention oriented and responsible.  A simple grammar or spelling mistake could wreck a potential deal.

Creating a great sales ad is an art form.  One of the best ways to ensure that you have a great sales ad is to work with an experienced business broker.  Business brokers know what buyers are looking for, have great marketing professionals at their disposal, and can help you frame your business in the best light possible.

Copyright: Business Brokerage Press, Inc.

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If you don’t exactly understand what corporate social responsibility (CSR) means, don’t worry.  We’ll cover the main points you need to know.  CSR is increasingly seen as something that companies of all sizes need to be aware of, so let’s take a closer look at a few of the finer points.

There are 4 basic pillars in CSR: the community, the environment, the marketplace and the workplace.  The community pillar of CSR refers to your company’s contribution to the local community; this contribution can take a variety of forms ranging from financial support to personal involvement. 

The second pillar of CSR is the environment.  The simple fact is that people around the world are becoming much more environmentally aware.  You can be quite certain that a percentage of your customers and/or clients have environmental concerns. 

Increasingly, consumers want to know that the companies that they are purchasing from have good environmental practices.  There are many ways that businesses can show that they are environmentally aware.  They range from recycling and using low-emission and high-mileage vehicles whenever possible to adopting packaging and containers that are environmentally friendly. 

The third pillar of CSR is the marketplace.  Proper corporate social responsibility includes the responsible utilization of advertising, public relations, and ethical business conduct.  Another key element in the marketplace pillar is adopting fair treatment policies towards suppliers and vendors, contractors and shareholders.  In other words, the marketplace aspect of CSR means rejecting exploitative business practices in favor of fairer and more equitable business practices. 

The final pillar of CSR concerns the workplace.  In the workplace pillar, CSR encourages the implementation of fair and equitable treatment of employees, as well as observing workplace safety protocols and embracing equal opportunity employment and labor standards.

Adopting CSR practices in today’s business climate is a prudent decision, as it serves to increase both shareholder and investor interest, while simultaneously encouraging a company’s value.  Likewise, embracing CSR practices can make it easier to attract a buyer and that party may be willing to pay a higher selling price.

Typically, buyers want a business that has many of the attributes supported by the four pillars of CSR.  Buyers want businesses that enjoy a high level of customer loyalty and have good overall relations with the local community.  Additionally, buyers want businesses that have quality relationships with their suppliers and vendors as well as loyal and dependable employees. 

Sellers must realize that buyers want products, goods and services that are in line with the current trends of the marketplace and have an eye towards future trends.  Finally, buyers want as little “baggage” as possible.  You can be certain that buyers don’t want to find any skeletons lurking about in the company closet.  The proper utilization of CSR can address all of these concerns and, in the process, make your business more attractive to a potential buyer.

 

Copyright: Business Brokerage Press, Inc.

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A recent and insightful Forbes article, “Study Shows Why Many Business Owners Can’t Sell When They Want To” penned by Mary Ellen Biery, generates some thought-provoking ideas.  The article discusses an Exit Planning Institute (EPI) study that outlined the reality that many business owners can’t control when they are able to sell.  Many business owners expect to be able to sell whenever they like.  However, the reality, as outlined by the EPI study, revealed that the truth is that for business owners, selling is often easier said than done.

In the article, Christopher Snider, President and CEO of EPI, noted that a large percentage of business owners have no exit planning in place.  This fact is made all the more striking by the revelation that most owners have up to 90% of their assets tied up in their businesses.  Snider’s view is that most business owners will have to sell within the next 10 to 15 years, and yet, are unprepared to do so.  According to the EPI only 20% to 30% of businesses that go on the market will actually sell.  Snider believes that at the heart of the problem is there are not enough good businesses available for sell.  In short, the problem is one of quality.

As of 2016, Baby Boomer business owners, who were expected to begin selling in record numbers, are waiting to sell.  As Snider stated in Biery’s Fortune article, “Baby Boomers don’t really want to leave their businesses, and they’re not going to move the business until they have to, which is probably when they are in their early 70s.”

The EPI survey of 200+ San Diego business owners found that 53% had given little or no attention to their transition plan, 88% had no written transition to transition to the next owner, and a whopping 80% had never even sought professional advice regarding their transition.  Further, a mere 58% currently had handled any form of estate planning. 

Adding to the concern was the fact that most surveyed business owners don’t know the value of their business.  Summed up another way, a large percentage of the business owners who will be selling their businesses are Baby Boomers who plan on holding onto their businesses until they are older.  They have not charted out an exit strategy or transition plan and have no tangible idea as to the true worth of their respective businesses. 

In Snider’s view, the survey indicates that many business owners are not “maximizing the transferable value of their business,” and additionally that they are not “in a position to transfer successfully so that they can harvest the wealth locked in their business.”

All business owners should be thinking about the day when they will have to sell their business.  Now is the time to begin working with a broker to formulate your strategy so as to maximize your business’s value.

Copyright: Business Brokerage Press, Inc.

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The simple but undeniable fact is buying a business is one of the single greatest financial decisions a person can make.  Buying a business can lead to great financial success or great financial failure.  This fact helps to underscore why it is so important to work with an experienced broker who can help guide you through the often labyrinthian process of buying a business.

In a July 2019 article from Smallbusiness.co.uk, author Kyle Carins explores three key factors that everyone should consider before they buy a business.  The first factor covered in Carins’ article, “3 Things to Consider When Buying a Business,” is appeal vs. viability. 

Appeal Vs. Viability

Not surprising, the most important variable for most prospective owners is that the business is indeed viable.  Not being able to differentiate between an appealing business and one that is viable can lead to financial disaster. 

As Carins points out, “Do you want to make money or do you want to fulfill a dream?”  Sometimes those two variables can intersect, but not always and not often.  In the end, it is vital to know whether a given business is, in fact, potentially lucrative. 

However, as Carins points out, it is also important that you choose a business that you will enjoy.  Nothing can be more spirit crushing than running a business that you truly hate, even if it is lucrative.  Selecting the right business for you is something of a balancing act that must take in a variety of often competing variables.

Considering Hidden Costs

The second factor that Carins looks at is the issue of “hidden costs.”  One of the key reasons that it is so important to work with a business broker is that a business broker understands these kinds of factors that you might otherwise overlook.  Due diligence is amazingly important.  For those who have never bought a business before, working with a business broker offers substantial protection against making a potentially serious mistake.

Second Opinions

The third factor examined in Carins article is “Getting a second opinion.”  For Carins, getting a second opinion is actually linked to due diligence.  He feels that additional opinions regarding a given business should go beyond working with professionals and should also include talking to friends and family who know you well.  Additional opinions can help one see angles that might otherwise be missed. 

Again, buying a business is complicated and will take up a good deal of one’s time and mental energy.  Your friends and relatives, understand your personality and your wants and desires.  Their input can be particularly beneficial.

Finding an experienced business broker can help you do more than simply establish whether or not a given business is a “good deal.”  Brokers with years of proven experience can also help you determine whether or not a specific business is a good fit for you and your lifestyle.

Copyright: Business Brokerage Press, Inc.

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There is no denying the fact that life is much, much easier when one can find the right buyer for his or her business.  Buying or selling a business can be a stressful affair, but much of that stress can be eliminated by getting the right support.

The Concept of the “Right Buyer” 

In the recent Inc. article entitled, “How to Find the Right Buyer for Your Business and Avoid Negative Consequences,” Bob House builds his article around a relatively simple and straightforward, but powerful, concept.  House’s notion is, “the right buyer is worth more than a big check.”

House correctly points out that far too many sellers become fixated on exiting their business and grabbing a big pay day.  In their focused interest in the sum they will receive, these sellers ignore a range of other important details.  In part, sellers often miss the single greatest variable in the entire process: finding the most qualified buyer.  The simple fact is that if sellers want to reduce their long-term stress, then there is no replacement for finding the most qualified buyer, as the wrong buyer can be “headache city!”

Plan in Advance

As House points out, it is only prudent to determine what you want out of a buyer well before you put your business up for sale.  For example, if you don’t want to offer financing, then that is a decision you need to make well before you begin the process. 

Additionally, House wisely places considerable interest on pre-screening potential buyers.  Pre-screening is a great reason to work with an experienced and proven business broker who can assist with the process.  As a business owner your time is precious.  The last thing you want are a lot of window shoppers wasting your time. 

Keep Your Focus on Your Business 

Remember, while your business is up for sale, you still have to run your business.  Quite often, business owners have difficulty running their business and navigating the complex sales process simultaneously.  The end result can be disastrous, as revenue can drop and business problems can arise.

Working with a business broker means that you are dramatically reducing your potential stressors throughout the sales process.  A business broker will ensure that potential buyers are pre-screened and that only serious buyers are brought to you for consideration. 

Currently, the market conditions are great for sellers.  If you are considering selling, now is the time to find a business broker and jump into the market!

Copyright: Business Brokerage Press, Inc.

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