If you’re ready to move on and sell your small business, then you might be looking for ways to get the job done with minimal hassle in return for maximum profit. Most people would typically go to a broker to sell their business, but there are many downsides to this common process.
Why should you avoid selling a small business with a broker?
The idea behind a broker is that they’ll help you sell your business by finding a buyer and managing the costs, but they’ll charge a commission for it and cut into your profits. It sounds like a good deal at first, but when you realize that brokers are essentially just expensive middlemen, you’ll probably start to look for alternatives.
If you’re not in a hurry to sell your business and don’t mind putting in a bit of work into the sales process, then you don’t need a broker at all and there are many other ways to sell your small business.
What are the alternatives?
The best alternative for someone that knows what their business is worth and doesn’t mind a slower and more involved selling process is to list it online. Websites like Business Trade Centre are a fantastic option for people looking to sell their business and avoid heavy commission fees from brokers.
Here is a list of advantages:
You only pay a single one-time fee to place your listing for 365 days or until you have sold your business
You can avoid large commission fees
You can sell multiple businesses at the same time
You can get in touch directly with the buyer to negotiate a deal
You still get 24/7 support to help you optimize your listing and get it shared
You can easily link people to the listing if they’re interested in buying your business
You can categorize your business so people can search for it
You’ll attract more buyers
You can buy and sell businesses with ease
You can avoid all of the hidden costs associated with working with a broker
As you can see, listing your business on a website is a fantastic way to avoid using a broker to sell your business. It comes with many advantages and it puts you in a more active role, allowing you to negotiate and set the terms of the sale. This is excellent for anyone that has experience in buying and selling businesses or simply wants to avoid paying a larger commission fee.
However, if you’re a beginner and have yet to sell a business, then it can be a little overwhelming to manage the process yourself. This might prompt you to seek out a broker instead, but we’re going to list a couple of tips on how you can successfully sell your business without a broker.
1. You still need a team to help you
Selling a business without a broker is simple enough. You can think of it like buying a trading something on an auction site, but do keep in mind that there are a couple of legal obligations that need to be met before you can sell your business.
At the very least, you may need to hire a lawyer to help you handle negotiations and legal matters. Selling a business without a broker doesn’t mean that you need to go it solo, so adding an attorney or at least some kind of legal professional can help you with the process. A good team is the key to selling your business.
2. Don’t compromise for anything
When negotiations start to get heated, you might find yourself willing to lower your expectations to make a guaranteed sale. However, the number one rule of selling a business or dealing with any expensive transaction is to hold your ground. You need to maintain your leverage and reputation when selling a business instead of letting the buyer lead negotiations.
Don’t let people manipulate you to bring the price down. Stay firm with the asking price and consult a financial advisor or your lawyer to help you with your negotiations.
3. Make your terms clear
The worst thing that can affect a business deal is to make something unclear. Whether it’s something unclear in the description of your business on the site or foggy legal details, make sure the language you use is always precise and free of fluff. If you’re dealing in-person, then make sure you’re clear and firm with your tone of voice. It’s also never a bad idea to double-check terms and conditions with the buyer to ensure that both parties are happy with the deal.
The clearer you make your terms, the less hassle you’ll encounter when selling your business. State your terms as clearly as possible so that your buyers understand what you’re asking for and you’ll have a much easier time selling your business.
4. Don’t get attached to your business
Selling a business can, for many people, be a stressful time because they’re essentially selling something that they’ve probably worked very hard on. Sadly, you need to come to terms with what you’re doing when you post the listing. Don’t become too attached to your business because it could cause you to lose reason and think irrationally during negotiations.
However, one good side effect of being attached to your business is ensuring that the buyer is a good choice. Not every buyer will seem like they’re the right fit to take over your business and you have every right to decline an offer if you feel that the buyer could ruin the business or mistreat the customers that you worked so hard to please. If they have a bad reputation or poor business background, then you may want to avoid selling your business to them.
There’s really no need to speak to a broker if you want to sell a business. Thanks to online business marketplaces, you can easily list your company for sale and start negotiating with buyers. It’s cheaper, it’s more personal and you get more control over the entire process.