Selling A Business? Your Communication Does Matter And Here’s How To Nail It
The decision to sell a business has to be supported by staunch determination and a great deal of precision and fluency. However, lack of communication can prevent you from securing a potential deal and might turn off buyers and sink your reputation. The art of communication plays an important role in leveraging the entire process of business selling. It helps to filter out the serious buyers and cater their interests in your business. You, as a seller, can best identify the wants and desires of a buyer, and help to convince them that your business is suitable for their needs.
This article helps you identify the areas you should dwell on to aid in a smooth business transaction and to secure the best deals out of prospective buyers. The following are the points you should consider when trying to best communicate the value of your business.
List the important things about your business and support your claims with facts:
The lack of knowledge, and improper presentation of facts, figures, and reports can turn off a large number of buyers which can potentially make the entire process of selling your business go wrong. Care should be taken to include details regarding past revenue, gross income, key assets, and the geographic location. Frequent questions concerning the business’ cash flow and revenue numbers should also be dealt with.
While you’re at it, do not forget to ensure that the confidentiality agreement is signed before these details are disclosed. Buyers are hungry for business details and might trick you into revealing them even without having any intention to buy your business. Thus, you must be very careful while deciding the amount of information that is being disclosed. If you’re putting up a business for sale, working with a business broker can help you to find out the crucial considerations that you need to convey to a buyer.
Filter out serious prospective buyers and know whom to devote the most time to:
A large number of buyers will hear your sales pitch without showing any positive signs that show readiness to buy the business. Such leads are frustrating and can readily cause exhaustion for someone who’s into giving a detailed account of the ready-to-be-sold businesses, such as Houston business for sale. Filtering out serious buyers usually takes experience and keen observation, and can be done by prying into their questions and their demands. Bland and unconvincing answers should come as a warning to the seller, indicating unsavory or disinterested motives on the part of the buyer.
Communicate the proper way, by knowing what to say:
A buyer looking for an existing business will question the seller as to why he made the decision to sell it. Such a question is deemed important, as the buyer obtains important clues from the seller’s response. As such, an answer should be well perceived for the health of the business. The seller’s response must include long-term planning for events such as retirement and health issues, and should not portray the business in a negative light. Immediately planning to sell the business often sends a wrong message that the business might be in danger and that the owner is trying to mislead the buyers.
In a larger picture, however, the reasons for selling a business matters less in comparison to when the business will be sold. The supply-demand phase, when on an upsurge, does not even require sufficient legitimate reasons to sell, and the buyer can often secure a great price if they are in a hot market and looking to cash out.
Discussing business health and future prospects of its smooth growth and viability can come across positively. Suggestions involving ways to increase capacity, market share and profitability can attract serious efficient buyers to seek ideas, and get them interested in buying the business.
Maintain and participate in a smooth communication flow (for it indicates professionalism), during the negotiation process:
Great communication is always key in creating, proceeding with, and securing a great deal. Communication, in the final stages of the sale, plays a crucial role in negotiation with the pool of viable prospects. This helps in securing the final deal with the most eligible buyer. Negotiation is the entire essence of the selling process, and many efforts that are terminated are due to a lack of proper communication. The issues of financing need to be discussed and negotiated mutually. The buyer often might devise various payment methods in order to execute the entire transaction. However, you must have an advisory team that can determine whether these methods are within your best interests or not as the seller.