Here are four Buyer traits to watch when selling your business. Just as there are different sellers with different motivations, there are also buyers with varying needs and personalities. If you’re a business Seller or looking to buy, understanding these different personality types may help you achieve greater success.
1. Unemployed
If a Buyer is unemployed, this can be the best type of Buyer. But there are some catches. They need to have sufficient funds as a down payment to purchase the business. Zero-down payment options to buy a home have not been successful. In addition to the down payment, they require a good credit score (FICO score of 700 or higher) and a clean credit report. Moreover, to qualify for a third-party loan, such as an SBA loan, they need industry experience. If you are the Seller of a business, the unemployed are motivated. They generally want to make a decision quickly and start earning an income again.
2. Engineer
This will be the most challenging Buyer to work with. They invariably have the money and the skills to run a business. However, they need to know absolutely every piece of information about the economy, industry, and your business. Many meetings are required, and each is long and laborious. Questions that are answered in the first three meetings are asked in subsequent meetings. If the answers are slightly different from what was said earlier, the Buyer wants to know why. They then go back and revisit every other question around that topic. Their chances of taking the emotional risk to buy a business are very low. After all the questions are answered, they find it impossible to commit by signing their name to the check to buy the business.
3. Talker
This person loves to talk. They have great personalities and charm. You think they are the perfect person for the business. They are pleasant to deal with, ask polite and relevant questions, and are genuinely interested in being liked and ensuring they fit in. There is only one problem – they don’t have any money, which can be a huge time-waster. Observe talkers; they are so good that you may be afraid to say no or offend them.
4. Know-It-All
A problem with the Buyer is that they are the know-it-all. They are like Talkers but not as diplomatic. Because they have a lot of knowledge, they sound like a great candidate. They “get it” and the industry and your business. They probably have money. It is just that they are hard to get along with, as they love to tell you what they plan to do to improve the business. At the same time, they have no problem suggesting changes you should make now or telling you what you are not doing right.
If you’re interested in learning more about buying or selling a business, please visit my website at www.RogersonBusinessServices.com or contact me today. I’d love to know how I can best help you.
