Why You Need to Hire a Business Broker when Selling Your Business
Andrew Rogerson in Business valuations, Management and Planning, Selling your business You’ve decided to sell your business. But who knows your business better than you do? Who can give a buyer the most compelling argument for why they should buy your business over another one in your niche?
Besides, you know how to read a contract and even draw one up. It’s a part of being an entrepreneur, right? So why do you need to hire an intermediary like a business broker in order to sell your business? There are several reasons, and all of them relate to you and the value of your time.
A Business Broker Lets You Focus
Whether you started with a couple of partners, or whether you have grown your business through your own efforts, you are now at a point when you have capital in the bank, employees, regular customers, and your cash flow is substantial. Once you have reached this point, your business is ready to sell, and you may even have a great exit plan.
However, selling your business is a large task. It involves an entirely different type of marketing with a unique focus. There will be hours of meetings, many offers, each with their own contracts to read and understand, and there is the complex process of readying your business for sale and managing the due diligence you and your buyer must engage in.
Do you really have the time to take away from your company to do all of those things? The answer with most entrepreneurs is no, not at all. You must continue to run your company and keep it profitable even while you are trying to sell, and a business broker can handle those tasks for you in the background allowing you to focus on what you do best: running your company.
A Business Broker is an Expert at Marketing Your Business
Let’s say that you are a fantastic marketer. You know your target audience, and your business has a high conversion rate on leads. Fabulous.
Selling your business requires you to shift gears entirely. You will have a completely different target audience and establishing what that is will take you hours of market research. When you hire a business broker, they do that research for you. The truth is, they have probably sold similar businesses to yours and have experience in reaching the right audience, those who are ready to purchase a business like yours and have the ability to do so.
You don’t have the time to engage an entirely different market when trying to sell your business, and a business broker has expertise that you likely don’t. Just as your clients hire you for your expertise or use your product to meet their needs and wants, you should hire an expert when it comes time to sell your business.
A Business Broker Knows What Your Business is Worth
When selling a business, many business owners fall into one of two areas of error. Either they undervalue their business because they don’t know the market for businesses like theirs or they vastly overvalue their business and want to set a price that no reasonable buyer would pay.
There are formulas and ways to value your business, and a business broker can help you understand them and set the right price for your business. A well-priced, successful business will sell quickly to the right buyer at the right time. A business broker has the expertise to make that happen by establishing the actual value of your company.
Focus on What You Do Best
Ready to sell your business? Don’t slow the progress you have already made or take precious time away from your business to work on selling it. Instead, hire a business broker, a professional to do the work for you. They will help you value your business, market it to the right potential buyers, and enable you to focus on what you do best: running your business.
Have questions? Want more answers to what it means to sell your business and the steps involved in getting it ready for potential buyers to look at? Contact us at Rogerson Business Services today to learn how we can help you.
