Although it isn’t very common, business owners sometimes consider trying to sell their business on their own. Often they think they can save money on a broker commission, and simply choose a price they want and advertise the business themselves. So…what’s the risk?
There’s a lot more to selling a business than just putting up an ad on the internet and a “For Sale” sign in the store window. Here are some things you need to know:
- It’s important to get your business valued (priced) by someone who knows not only the business sales market, but specifically has years of experience selling hospitality businesses. An owner might understand the hospitality industry, a general business broker or real estate might understand the sales market, but only Redmako Business Sales understands both.
- How your business is marketed makes a huge difference. There are two parts to this.
- 1. First of all, you need to know where to advertise to reach the potential buyers of hospitality businesses. Unfortunately this is a mistake that generalist agents and brokers make too – they try to advertise your business next to a beauty salon or gym. The problem is that someone looking to buy a beauty salon business isn’t looking to be a restaurant manager. Hence it takes longer to find the right buyer, and many potential buyers won’t look through 40 plus pages of random businesses for sale to find the one hospitality business. Redmako Business Sales is known as the place for buying hospitality businesses – that’s where potential buyers go first. And our database is full of only people interested in hospitality.
- 2. Second, only someone who has sold hospitality businesses for 12 years, or been a hospitality business owner themselves, could possibly understand the motivations a potential buyer has to buy their own hospitality business. And it’s getting the wording right in those advertisements that will help your business sell. The perfect mix of sales experience and hospitality experience is needed to create the perfect ad.
- If you don’t use an experienced Broker – be prepared to answer myriads of calls and enquiries about your business…from people who aren’t really prepared or even able to buy your business. Your broker is a filter, ensuring you only spend time with serious buyers, rather than spending hours each day responding to random people.
- The more experienced a broker is in selling hospitality businesses, the quicker they can spot potential buyers from time wasters.
- Don’t assume that saving on broker fees will be a direct reflection on how much you keep in your pocket at the end of the sale. It simply doesn’t work like that! Brokers can do a number of things from saving you money and/or time, and saving you from making costly mistakes, to helping sell a business for more money. Brokers have years of experience and know the best and quickest ways to do all the intricacies and specialised details (for things you probably haven’t even thought about yet).
At the end of the day, it’s your choice if you would like to try to sell the business yourself. However, if you would like to get help from the hospitality business sales specialists – Redmako Business Sales team is just a phone call away and would love to talk to you. Just make sure you let them know your business is in the hospitality industry – they won’t sell anything else!