The winds of change are calling. It’s time to sell your business and move on to greener pastures.
But how much is your business worth? This question can prove a huge barrier for even the most experienced business owner, putting them in the troubling position of putting off their sale or trying to jump into the market while it’s still booming. Instead of thinking you can only get one or two good things out of your proactive attitude, rest easy knowing there are quite a few ways to determine the value of your business. A business broker is a specialist who knows all about the art of putting businesses up to market. They can help you with a business valuation, steer you toward finding the right buyer or just answer any questions you have about the process.
Before you look toward a local business broker, browse the list below to brush up your knowledge and eliminate seller’s anxiety before it can grab hold.
Small Businesses Are Booming
The United States wouldn’t be where it is today without the support of small businesses. It’s estimated there are around 28 million small businesses operating as we speak. How does this translate into sales? Thanks to a BizBuySell.com Insight Report, there were nearly 8,000 small businesses sold back in 2016. These businesses varied quite a bit, too, so you don’t have to worry about whether or not you have the right niche to reach a viable seller.
There Are Plenty Of Buyers
Let’s not get wrapped up in misconceptions. There are plenty of prospective buyers just waiting to see what your business has to offer. It’s estimated that, at any one time, there are 15 prospective buyers on the market for every single business. Part of learning about selling a business is figuring out what customers are looking for so you can spend more time advertising to the right person, rather than shouting to any and all in earshot and hoping something will stick.
A Business Valuation Will Give You The Bigger Picture
The best way to determine how much your business is worth is to apply for a business valuation. This is a useful resource that estimates your company’s present value and the likelihood of future cash flows as pertaining to a modern market. The three most popular business valuation methods are the asset-based approach, earning value approach and market value approach. Another BizBuySell.com Insight Report found businesses sold in 2016 seeing their revenues and cash flow growing the previous year.
Know Your Audience
Even the best offer won’t go far if you’re not advertising to the right people. A report provided by the National Association Of Small Businesses saw some challenges proving more pervasive than others — the top three issues with running a business were economic uncertainty, cost of health insurance and a decline in customer spending. On the selling end, over 70% of business brokers in a recent survey reported a quarter of all their sales going to Baby Boomers.
Contact A Business Broker
When you want help selling a business, a business broker will be the middleman between you and that ideal customer. A 2014 survey of business owners found less than 15% actually discussing with an attorney or related professional when deciding to sell their business. This leads to a lot of sales that are too expensive, too cheap or aimed at the wrong people, spreading the misconception that selling a business is a near-impossible venture. With a business broker you can determine your value and get your business up to market in one fell swoop.
When you’re asking, “Who is the ideal buyer to sell my business to?”, there’s a business broker waiting with a few answers.