How To Sell A Small Business Without A Broker

Published on: 27 December 2019 Last Updated on: 04 September 2024

Once you’re ready to sell your small business, hiring a business broker tops your list. An article from this perfectly defines the role of business brokers that is to act as “intermediaries between buyers and sellers of a business”. They are the equivalent of real estate brokers or agents who sell properties on behalf of property owners.

Business brokers manage everything necessary to sell your small business, from planning to marketing to closing the deal. Some even assist during the transition process. Considering such an enormous task, enlisting a broker may seem the easiest and most convenient thing to do. However, their service comes with an outrageous fee, usually around 10% commission from the sale. This is certainly a huge cut from your profits.

If you want to retain the full profit from the sale, you can opt to sell your small business sans middlemen. This is an excellent choice especially if you have previous experience selling a business, you know of prospective buyers, or you’re not in a hurry to sell-off. However, when you decide to sell your business on your own, you have to be ready for a tedious legwork.

So, how do you go about the sale?

Know your reason for selling the small business

According to a business broker, the first thing that a buyer would want to know is why a business is being sold. For a business to attract a potential buyer, you need to have a good reason.

Some of the common reasons are retirement, sudden changes in personal circumstances, illness or death, boredom, partnership disputes, and burnout. Prospective buyers find these as ‘attractive’ reasons to buy a business.

It may be harder to sell a business if you tell the buyer that you’re selling the business due to its sorry financial state, persistent losses, lack of manpower, and changing market conditions and trends.

Make your business easily marketable by timing your sale properly. Show positive attributes to make it more marketable such as a strong customer base, increased profitability, consistent good financials, well-defined business processes, and a good contract.

Plan your sale

Prepare your business at least two years ahead of the sale, especially if you won’t enlist a broker. Have an ample amount of time to improve your client base, business structure, and financial records. This will help improve the value of your business and make it more attractive to buyers. This should also help ease the transition process.

Get your business appraised

Once you’re ready to sell, you need to decide on the worth of your business. It is best to work with a professional business appraiser to get a proper valuation. Often, business owners become illogical when it comes to evaluating their own business. Some price is too low in an attempt to make it more marketable but end up losing on potential profit. Others price it too high hence making it unattractive to potential buyers.

A business appraiser will evaluate your business to determine its worth. He then prepares a detailed explanation to give credibility to the proposed price.

Prepare all documents

Give time in preparing the design or sales package for your business. This document represents your business in the best possible light to potential buyers. It should include financial, operational and marketing information. If you are not comfortable with your communication skills, you can enlist the help of professional business writers.

Financial documents are an important part of the sale process. Gather your books of account, financial statements, and tax returns for the past four years. Review these documents with an accountant. In addition, develop a list of assets that are being sold along with the business. Include other necessary documents such as lease agreements, supplier contracts, and contact lists.

Prepare an information packet or operating manual that provides an overview of your business processes. In addition, you want to add photographs of your business, testimonials, case studies, and customer profiles. Highlight accomplishments and milestones to make it more marketable and command better-asking price.

Prepare your business on-site

Alongside the documentary preparations, you should also make your business site presentable. Check your physical store, production site, warehouse, and other related locations. You might need to have some areas repainted or redeveloped. Check if equipment or machinery needs to be replaced or fixed before the sale. Investing in such developments can help improve the asking price.

It might sound cliché but first impressions last. An unkempt and dilapidated business site might turn off a potential buyer. It pays to invest in your physical asset as soon as you decide to sell on your own.

Look for a buyer to sell your small business

Finding a buyer is difficult, but it becomes doubly challenging if you don’t have a business broker. Unless you have a ready buyer, it may take several months to years before you can find the right buyer.

The advantage of hiring a business broker is that they have wide networks and established marketing methods. If you are working solo, you will need to compensate for these services. There are listing sites dedicated to businesses-on-sale. You only need to pay a one-time fee and your business becomes available to potential buyers.

You can also tap your networks. Perhaps, a friend or an acquaintance (or someone they know) is planning to buy a business. You can check your local business clubs or chambers. Visit online forums and social networks. Don’t limit your advertising methods.

Final Thoughts

As you can see, if you sell your small business without a broker is possible. It can even be advantageous if you play an active role in the sales and negotiation process. Quite obviously, business owners are more passionate to sell their business to the right buyers. Of course, you just have to remain rational and avoid getting your emotions to affect your decisions.

As a final caution, if you have no experience selling and buying a business, you should consider working with a business broker or someone who has experience in this field. Better yet, you can check with your local chamber of commerce for assistance and counseling.

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Office Spaces – Which One is Right for Your Business?

There are a number of different office spaces to choose from these days, each offering different amenities that appeal to different industries and businesses and their specific wants and needs. But how do you know what office space or business centre would be right for you and your business? We are here to help! In this article we are going to look at three different office space options, what size businesses they are most likely appeal to, and what they have to offer the businesses that could potentially occupy them: Traditional Office Space The traditional office space is the perfect option for larger and more established businesses who have the adequate cash flow available in order to pay for the large overhead expenses that usually come with these kinds of pricy spaces. Some of those overhead expenses would include insurance, rent, telephone bills, and utilities, to name a few. Perfect for larger teams who need the space, traditional office spaces provide businesses with the resources they may need to hold meetings, conferences, and creative planning sessions where employees need to come together to plan or discuss business, as well as a staff room, kitchen, and other luxuries. A traditional office space, because of its costly overhead, it is not the ideal option for small businesses or start-ups. Read More: How To Choose The Best Printer For Your Office Shared or Co-Working Work space A shared workspace usually comes about when a business who is set up in too large a space, rents out a portion of it to another company or business who is not in the same field as they are or a direct competitor. By renting out a portion of the large office space it helps to lower the amount of money the original business is paying for its rent and utilities, all while being able to keep the space they want and avoid moving. This type of working space is ideal for companies who are looking to save a little extra cash on rent and utilities and don’t mind sharing a working space with another company. A co-working space is ideal for small businesses or start-ups that only have one or two employees working for them and do not have the cash flow to invest in their own permanent space and all of the necessary equipment that they would need (for example desks and chairs). Co-working spaces come fully kitted out with internet, furniture, printing services, and more, and some even include the likes of conference rooms that can be booked on a daily basis and utilized by everyone. Home-Based Office Space An advantageous option for both new businesses and small businesses alike, home-based office spaces have become increasingly popular over the last couple of years – and quite rightly so. With the prices of private office spaces soaring and the need for a more cost-effective option, home-based office spaces have become the choice for many small or start-up businesses who are looking to save on costs for both rental and utilities. However, there are a few downsides to working from a home-based office space, including that there is nowhere to meet with clients, and maybe some employees would not feel comfortable working from your home. However, there is always the option of meeting clients at a restaurant or coffee shop, and taking the time and effort to find the perfect employees who understand the vision you have for your business. These negative points can be worked around in order to get a start-up or small business off the ground and on to bigger and better things. By following the guidelines mentioned above you should find the ideal office space for you and your business, ensuring that you make the right decision and get value for your money. Read More: Making Your Office Safer For Workers Office Spaces – Which One Is Right For Your Business?

Principles for Leading Your Company through COVID-19 Crisis

Ever since the COVID-19 outbreak in the UAE, the government and other institutions have been fighting to curb its spread. The virus spreads when a healthy person inhales droplets from a person who is infected. It also spreads when you touch surfaces that are contaminated then touch your eyes, mouth, or nose. It is necessary to adhere to the recommended health guidelines like washing your hands or using an alcohol-based sanitizer, maintaining social distance, avoiding crowds, etc. Employers should ensure that the workplace is safe and can accommodate employees without compromising their health. Preventing the Spread of COVID-19 at the Workplace Keeping your workplace COVID-19 free does not have to cost much; maintain hygiene and cleanliness. Ensure that surfaces like tables and desks, keyboards, and telephones are wiped and disinfected regularly. Encourage regular hand washing by workers and customers. Provide sanitizers and hand wash soap at entrances, exits, washrooms, etc. Ensure that sanitizer dispensers never run out. You can also hang informative posters on the importance of washing hands to prevent the spread of the Coronavirus. Promote the use of face masks at all times and practice good respiratory hygiene. Make sure your employees are well aware of Coronavirus Health Insurance. How to Lead Your Company during the Coronavirus Leading a team during the COVID-19 can be tough; there is uncertainty, and employees are constantly worried about their families and health. Here are principles you can use to lead your team during this time of crisis. Preach Hope Your employees will mirror your behavior, so as you talk to them about the present and unclear future, it is necessary to remain optimistic. Be truthful and assure them that the company will withstand the hard times, and things will be back to normal. You need to give them hope, act like a leader. Taking leadership training Dubai lessons teaches you how to handle overwhelming situations in the workplace. Although preaching hope is necessary, avoid giving false assurances as this can break their trust in you and the company. People-Centered Approach You need to be in tune with how the staff feels and thinks during this crisis; watch for changes and respond to any concerns. Employees are going to be worried and anxious about job security and health. Executives who take leadership training in Abu Dhabi classes know how to act even in a crisis. Show genuine concern for your workers; some risk their health to be at the office while others work from home juggling family and workload. Effective Communication Communicating is not enough; you need to ensure that the message is understood and not blown out of context or misinterpreted. Try to maintain personal but professional communication with each member. Be transparent, and keep the employees informed, but don’t bombard them with too much information. Communication is a two-way-street; listen to your team and receive feedback without judgment. When employees are free to issue their concerns and opinions, they feel appreciated and valued which leads to job satisfaction and improved productivity. Collaboration Don’t pretend to know everything; nobody expects you to. This is the ideal time to rely on your resources, employees, and all team members. Create taskforces, sub-taskforces, and explain each person’s role; this makes them feel that they are contributing positively to the workplace during this crisis. Collaboration fosters cohesion and builds trust within the team. When people work together they can come up with better solutions to problems. It also helps employees to adapt to the new norm. Change is inevitable, and organizations need to adapt accordingly. Establish a Common Vision Focus on setting out a simple, shared vision; this fosters a sense of purpose. As the crisis escalates, a shared vision reminds the team to work on what is needed at every stage and to focus on important issues. It also helps employees to focus on the organization’s goals without getting distracted by the outside world. It steers employees in the right direction. Having a clear vision ensures that every member is on the same page. A good vision is not enough; you need to communicate correctly to let everyone know their responsibilities and expectations. Be Present It’s crucial to be present at the workplace to interact and support your team. It is also necessary to do the same if you have a virtual team. Most organizations have all or some of their employees work from home. It is necessary to schedule regular meetings through video conferencing. This makes remote working employees feel seen and included in everyday routine and decision-making processes. You don’t have to be physically present to lead your team. If you lead managers, you need to keep a tab of their daily routine and continue with your coaching conversation. The COVID-19 crisis has changed the workplace; some people work from home while others continue with their normal routines while observing health recommendations. It can be overwhelming to lead a team during a crisis; some workers are confused while others are worried and frustrated. As a leader, you need to develop strategies to keep your team focused during these times. Read also: 5 Ways Technology Will Change the Hospitality Industry Post Covid-19 Pandemic

6 Tips to Help Your Business Stay Ahead of the Competition

With the ever-growing technological advancements, the business landscape has been changing rapidly. Without a competitive advantage, it’s difficult to make meaningful profits that can fuel your business. It is therefore important to concentrate on your competitors and come up with easy to offer better products and services to the customers. If you intend to outperform the competition, you must be willing to create a competitive advantage for your business. It’s one of the reasons why some ideas that seem average achieve outstanding success. Here, you’ll learn a few tips to give your business a boost and become better than the competition. Balance your strengths and weaknesses : Just because your competitors have developed a superior product that is offered at a lower market price doesn’t imply that you’ve lost the fight. The truth is that every company has a few weak points that you can exploit. Your main goal is to find the weaknesses and ensure that your brand is performing better. For instance, you can focus on offering extended guarantees or a better customer service to your clients. During your marketing campaigns and presentations, you should make sure that all your target audience understands the unique selling points and how they can benefit them. Look for bigger clients : When you win a bigger client, you can be sure that you’ll have better revenues as a result of increased business. This implies that you’ll have enough resources to run your marketing campaigns as well as recruiting top talent. At times, it can be easier to deal with a big client since they have established systems. On the contrary, small clients tend to have more service problems and you need to dedicate more attention to them. Most importantly, working with a huge client will give you some leverage in terms of social proof when you intend to look for even bigger customers. Focus on the fundamentals : When your competitor introduces a brand new product in the market or develops an extravagant marketing strategy, it’s easy to panic. But when you take a closer look at the fundamental principles behind the offering, you’ll realize that most of the add-ons are just for showoff. Unless your competitors are focusing on creating a customer base built on their burn rates, they aren’t doing anything that should scare you. Therefore, the hype they may have generated doesn’t reflect the true picture on the ground. As such, the most important aspect is to consider what is adding value to the business as well as grow the bottom line. Plan less and conduct lots of tests : When you are running a small business, your main advantage is the mobility and flexibility. Instead of attempting to be perfect, focus on accomplishing more tasks that allow you to innovate. On the other hand, a bigger organization has a tendency to be sluggish when completing tasks. This can be attributed to the lengthy planning process that requires several authorizations. Basically, numerous plans and forecasts are not always useful. At the end of the day, you end up testing few ideas since you’ll have invested lots of time in pre-action tasks. Successful business people understand that competitive markets are not easy to predict especially when you want to introduce a new service or product. As such, your best option is to take action and test the idea in the market. When you invest in tests, you are bound to gain insight and improve your products. Most importantly, you’ll be able to focus on satisfying the market needs and compete more efficiently. Outside advice is critical : While it’s important to listen to the people working in your business, the truth is that they have dedicated most of their attention to executing the ideas. This means that it’s easy to be oblivious to market changes happening outside the organization. More often than not, prompt execution of planned tasks seems to be the most appropriate thing to do when you want to make progress. Nevertheless, getting some insight from an outsider can be quite instrumental in getting an idea of what the clients expect. This input can guide you in adjusting your services and products as well as gain a unique competitive advantage. Seek innovative ways to disrupt the market : When you stick to the status quo, it’s likely that you won’t be able to come up with new things. Instead, be on the lookout for different methods of doing things by testing various approaches. In the long run, this makes your business prepared to take advantage of new and lucrative opportunities. However, being innovative also means that you will need more funds to keep your business going. Unfortunately, cash flow problems are one of the issues plaguing the small business sector. But this doesn’t have to stop you. The truth is that you can take advantage of small business loans from justrightloans.com and keep your finances in order. With financial products like business lines of credit, you can have access to funds whenever the need arises. In the end, you will be more prepared to compete with your rivals. Conclusion : In business, even the smallest competitive advantage can have a huge impact on the outcome. Therefore, your main responsibility is to find ways of becoming better than your competition. At least, this is a sure way of ensuring you stay in business for a long time. Read Also : Why Your Business Needs Call Center Tracking Protecting Your Business From Retail Theft Cloud Hosting: Top Five Reasons To Take Your Business To The Cloud

How To Sell A Small Business Without A Broker

Know your reason for selling the small business

Plan your sale

Get your business appraised

Prepare all documents

Prepare your business on-site

Look for a buyer to sell your small business

Final Thoughts

Cost Effective Custom Mobile Accessories Packaging for your Small Business

Basic Small Business Tips for Noobs Who Want to Start a Venture in 2020

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Related

Office Spaces – Which One is Right for Your Business?

Principles for Leading Your Company through COVID-19 Crisis

6 Tips to Help Your Business Stay Ahead of the Competition

How To Sell A Small Business Without A Broker

Know your reason for selling the small business

Plan your sale

Get your business appraised

Prepare all documents

Prepare your business on-site

Look for a buyer to sell your small business

Final Thoughts

Share this Article

Cost Effective Custom Mobile Accessories Packaging for your Small Business

Basic Small Business Tips for Noobs Who Want to Start a Venture in 2020

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related