As an independent online business owner, you may think that selling your business yourself is good idea; after all, you know your company best, and you will maintain more of the control. However, after you examine the steps necessary to sell your business yourself, you may reconsider. Selling an online company is a complex activity that requires a third party to coordinate the activities of the seller and the buyer; a business broker has the experience and training to assume that role. Many business transactions fail because the seller tries to exclude a business broker from the selling process. A business broker is not a sales person, but a business professional that facilitates a business transaction to the benefit of his or her client. Online business brokers are well versed in the steps of the sales process and know all the parts that need to come together to make the sale happen. Many buyers will quickly walk away from a sale due to frustration, or if they feel that the seller is not being honest with them. Having a broker helps alleviate some of these concerns.
If you are thinking about handling the sale of your company by yourself, keep in mind that the following are only some of the many actions you must take in order to coordinate the sale of your business on your own:
Prepare your company for sale – The sale of an online company involves making sure the business looks good on the outside and runs well and is profitable on the inside. A business broker can help you get your business records in order, as well as to recognize which improvements need to be made.
Establish a price – Naturally, you want to get the best possible price for your online business, but you must understand that the price is determined by the current marketplace. With the help of a business broker who will use industry-tested valuation techniques, you can make sure you get a competitive price for your business. Online business brokers have access to industry related data and also have the experience to make informed decisions about the listing price.
Market the company – Marketing your online company is one of the hardest parts of selling a business on your own. Not only do you have to develop a strategy, you have to find the best possible mediums through which to advertise. With the help of a business broker, who will use his or her networks of professional associations and buyer prospects, you can effectively spread the word about your company to the best possible buyers. One of the most effective mediums for marketing a new business for sale is a network of interested buyers. An online business broker has thousands of contacts that are looking for their next investment. By utilizing a business broker, you gain access to this network, along with the proper sales tools and presentations that are necessary to effectively sell an Internet business.
Maintain your privacy – When you are selling an online business, it can be difficult to maintain confidentiality. There are certain things you can do to protect yourself and your company, including using nonspecific terms, screening prospective buyers, and asking all parties involved to sign confidentiality agreements. A qualified business broker can help you with all of these things.
Present the company – Overall, business brokers have the best network of potential buyers, they know how and when to advertise, and they can get the best possible price for a company. They also know the right features to highlight, such as your sales generation model, if your business is driven from Organic Ranking vs Paid Listings and many other considerations. Different buyers may react negatively or positively to certain aspects of a business. The way the business is presented needs to reach all potential buyers not just one.
Choose a qualified buyer – Just like there is the perfect buyer for every house, there is the perfect buyer for every online business. You just have to find him or her. This is another aspect of selling your company that a business broker can help you with. Because of their knowledge of buyer behavior combined with their access to buyer databases, business brokers can be a real asset when it comes to finding the best buyer for your company.
Negotiating the sale – One of the most important parts of selling your business will be the actual business transaction. From negotiating the price to spelling out the terms to other aspects of the sale, there is a lot to it. A business broker will be able to assist you with every step of the process, including managing the paperwork and keeping track of minute details.
Overall, if you are planning to sell your company, a business broker can save you significant money, time, and general work involved with the sale. Although business brokers are not magicians, they will market your business only to qualified buyers, advertise the company in the right mediums, and do other things to ensure that you get the most for your business.
When you look for a business broker, search for someone who has a detailed understanding of the buying and selling of online companies so he or she can effectively facilitate the transaction. By choosing an online business broker that is performance driven, you will also ensure that you are working with someone who will fight to get you the highest return on your business.