PROPERLY PRICING YOUR BUSINESS IS CRITICALLY IMPORTANT!
Determining the asking price of your business is one of the most important decisions you will make.
If you start with a high price, you will miss the most important marketing period for your business.
Your best buyers are the ones who will recognize the value of what you have for sale and will be willing to pay top dollar for it.
The moment your business hits the market, you have the opportunity to be in front of the largest number of these best buyers than you will at any time during the course of the selling process.
Help-U-Sell Your Business agents know the market and will work with you in pricing your business properly.
A properly priced business ensures a successful sale.
I’ll let you in on a little secret – PRICING YOU BUSINESS is the single most important thing you’ll do to insure the salability of your business. All the marketing in the world can’t sell an overpriced business, and the best salesperson in the world can’t sell it either.
An overpriced listing sits and sits on the market forever and wastes everyone s time.
If you start out pricing your business too high, you’ll miss the most important part of selling your business – here’s why – at any given time, there is a certain amount of buyers in the marketplace, looking for a business just like yours. Lets call them your best buyers – these folks are motivated and have been looking for a while. They have seen all of the overpriced listings out there, and these are the ones who will recognize the value of what you have for sale and will be willing to pay top dollar for your business if it is priced properly.
The moment your business hits the market is when you will have the attention of the largest audience of motivated buyers than you will at any time during the course of the sale process.
Because if this, they naturally have their defenses up, and as the saying goes, you never have a second chance at a first impression.
Yes, other will trickle in over time, but the first few weeks are critical to tap into the large pool of buyers who are already looking.
Before you place your business on the market for sale, you absolutely must have TWO presentations together.
One is simple basic information – just enough to allow the potential buyer see if your business meets their basic needs, and if it does it gets them to sign and date a Confidentiality Agreement. You need this for three reasons:
- You need to protect your Confidentiality, and
- You need to make sure no-one gets information on your business that you don’t want to know.
This could be someone you just don’t like or trust, an employee, or maybe a ruthless competitor that might go after your customers, employees and suppliers.
The SECOND presentation only goes out to the people who qualify through the first round of Confidentiality and they receive what were call a Confidential Business Profile” it has more “detailed” information about your business, but still does not reveal the name or exact location of the business. (This is something we came up with, and to the best of my knowledge, no other business broker in the industry goes through this process to protect your identity and confidentiality)
This process pre-qualifies the potential buyers, and eliminates the unqualified tire kickers and time wasters.
Getting back to pricing, there are 3 things to consider when it comes to pricing your business.
They are: Past, The Present, and The Future.
PAST: You need to document the past, and the only way to do that is with financial information.
PRESENT: Then, you need to tell the present story of the business, and that comes with an up to date P&L statement as well as how the business is operating today.
FUTURE: The third is the future. It might sound a bit corny, but the truth is, people are only interested in buying the future, and the only way to visualize the future is by past performance and the present position and condition of the business.
Pricing Your Business is not child’s play, and should not be taken lightly –
Contact Us if you’d like to receive a business valuation.