Selling a business in a slow economy is really challenging. Buyers are very wary when confidence is low.
So how do you sell such a business in such circumstances. Here are some tips:
1. Don’t focus on your fear:
When you focus on fear you don’t understand what is right or what is wrong. So you should focus on positive features of your business.
2. Create new price options: Consider reducing your price or possibly offering vendor finance to a purchaser. This means you lending some of the purchase price to a buyer. This loan will usually be secured only against the assets of the business. You could also consider accepting payment in stages. This means that the buyer will pay let’s say half of the purchase price upfront and the balance in the equal instalments over the next twelve to twenty-four months. Each of these ways will help you secure a better purchase price as you are sharing some of the risk with the purchaser.
3. Network, Network and Network: Use your social, family or business network for selling your business. You never know, may be some of your family friends, social friends or business friends are willing to buy your business. So it is always good to tell your friends about selling your business if you can trust them to keep this information confidential.
4. Go on the offensive: Some business strategies can be seen as defensive, while others are offensive. Defensive business strategies are reactionary and involve a wait-and-see approach, observing what competitors are doing and then responding. Offensive business strategies involve taking proactive, often aggressive action in the market. So going aggressive may help you turn up some extra options.
5. Stick to your sales process: The one thing you will find in slower economical condition is fewer buyers and hence less demand. This may means a longer sales process. However you should not give up. Be prepared to stick it out and search for new ways to get your business in front of buyers.
6. Always stay positive: You should be always showing a positive attitude towards your business. Positive attitude means always improving your business. Don’t be tempted to blame the economy or the government and excuse yourself from continuing to take positive action. Keeping up your sales and lowering the expenses no matter what the economic conditions will help in maximising your business value.
7. Get a business broker: It is always good to get a business broker while selling your business. They are the professional and they know how to sell your business in great value.
