Hire a Business Broker or Sell a Business Yourself
Selling a business can be a very challenging task. It requires patience and skill. Whatever may be the reason that made you arrive at a decision to sell your business to another person, all you are really concerned about is the highest possible price that you can avail for it. Your business is your personal entity that you have not only built but also nurtured over the years and it is only right on your part when you demand a price that you think best satisfies its worth. Other than the price, the buyer is also a key player that you consider before you make the final call. It is only prudent of you, when you search for a buyer who shares the same amount of respect for the business as you do. Now the question of the hour is, can you sell your business yourself or should you indulge a Business Broker to do all your work for you?
The pertinent article is not directed towards criticising the two mediums of selling your business which are, hiring a business broker or selling your business yourself, but simply aims at putting across certain points which are key elements of the two mediums.
You can make your own sale!
Your business is your own. It is as valuable to you as any other member of your family. It is not wrong to exclaim that your business is in fact that important part of your life that you have built by investing your time, money and hard work. Over the years of establishing it, you have double checked each step that you have initiated to establish it and you have very carefully verified all of its policies, programmes and operational structure. It is you who has built a relationship with your customers and kept them loyal to your company and it is no one but you who has employed its work force after carefully examining their qualifications, invested in the infrastructure and carried out all other activities that are necessary for a business to operate. Because you are the mechanic of your machine, there is no one other than you can understand the integrities of your business and convince the buyer that this particular purchase will perhaps be the best decision he or she ever made.
There is no one else other than you who can describe in detail to the buyer the real nature of your work and hence, there is no one better placed than you to make the sale. However, it brings with it many disadvantages because selling a business is equivalent to having a full time job with no regular pay. It will require complete involvement from your end in terms of the various scheduled meetings, discussions, negotiations, reviewing the various documents and then verifying the same and other time consuming chores that are necessary for the successful completion of the sale process. It will take away from you the time that you could use to invest in something more valuable to you. And if you are a player of multiple businesses and it is only one branch that you are selling, the self-involvement can make you lose focus from your other business ventures for an extended period. But again, who better to sell your business than the person who operates it on a regular basis.
A Business Broker to your rescue!
Selling your business yourself can be a very emotional exercise and it may block your objectivity. In such scenarios, hiring a business broker who has an objective approach is your best option. The job of a Business Broker is to provide you with professional assistance in matters related to the buying and selling of a business and also providing you with such offers and advice which ultimately helps you in making a solid decision. At the time of finalising the sale, a Broker can be of enormous help in coordinating all that is necessary to execute a sale.
There are many challenges that an owner of a business faces when he decides to sell a business some of which are, facing difficulty in maintaining confidentiality before the company’s employees, customers and vendors to avoid any panic arising therefrom, evaluating the best price for the business, its marketing and advertising to invite buyers and most of all keeping your emotions towards your business in control. The main purpose of engaging a professional Broker is to hire someone who is trained to handle such challenges and knows very well how to alleviate them as well.
The Broker takes the task of selling your business in his own capable hands and allows you to focus on other important things. The Business Broker has the required expertise in assessing the right value of your business, formulating a structure to carry out the deal, negotiation skills so that you get the best price for your business and knows how to invite prospective buyers by marketing and advertising the relevance of your business and its reputation. The Broker allows handles tasks related with financing, preparing the important documents, dealing with multiple buyers at the same time and maintaining confidentiality. Most important advantage of hiring a business broker is his or her experience in the profession. It is their daily job to sell or buy businesses and therefore you can trust them to sell your business with the same enthusiasm and vigour as other businesses.
It all comes down to the prevalent timing and circumstances. If your business has a few employees and the company requires your complete attention on a regular basis, then it is recommended that you hire a business broker and avoid taking the task in your own hands. If, on the other hand, you believe that you have the required experience of selling a business and have the necessary resources and the time to invest into the project at hand, then it is worth a try. The decision in both the cases is absolutely yours and you must take it wisely.