How To Represent Your Business To Buyers For Success
The one primary emotion that needs to be managed throughout the buying process for all buyers…
Fear.
Fear of choosing the wrong business.
Fear of missing a crucial aspect in due diligence.
Fear of overpaying for the business, and ultimately…
Fear of failure.
Most business buyers are looking for their first business, which means this emotion is usually at its strongest.
Even for those that are not completely new to it, spending tens or hundreds of thousands of dollars is enough to stir this emotion into a storm for some.
So what can you do to help with this if you’re selling a business yourself?
1. Be prepared
Prepare your documentation into a neat, professional profile explaining everything they need to know in one place.
This allows them to feel that even the questions they didn’t know they had have been answered, giving them the confidence to make a decision.
(for more information about a Bonza Business Profile check out last week’s email or the blog here).
2. Answer quickly
Be prepared to provide answers to questions quickly. Taking too long to answer or send information when requested can give the impression that you’re not serious or worse, you have something to hide. Uncertainty can kill a deal fast.
3. Price accurately
This is the sole reason we offer an obligation free, upfront appraisal of your business, so that you can make a more informed decision about your sale option.
We had a gym franchise client once price their business $100,000 above our recommended price.
To our surprise, we managed to extract an offer at the asking price, however, once the buyer’s accountant saw the business, we never heard from the buyer again.
Nothing scares a buyer more than finding out they almost overpaid for a business!
(FYI – you can get your obligation-free appraisal, no charge, with an experienced Bonza Sales Expert by clicking here).
In truth, managing your buyers’ fear is a challenging task as the seller, mainly because you will appear biased toward selling the business.
This is where having an experienced third party between yourself and your buyers can really help, acting as not only a punching bag for if/when emotions run high, but also to support and prepare the buyer for the decision they are about to make.
If you have any questions at all, don’t hesitate to get in touch.
