Selling Your Business Online

2misi.com

Many business owners looking to sell their business don't realize they can use the internet to make the selling process go more smoothly. Online business for sale marketplaces allow sellers to reach a large number of potential buyers and provide resources for owners considering putting their business up for sale.

Q: What should a seller do to prepare for listing a business for sale online?

A: Allowing yourself enough time is key. Too often, people try to rush their business to market and run into complications during the selling process as a result. Figure out your company's financial situation so that you can present this information to prospective buyers.

Once you put the business up for sale, have all of the information relating to potential growth and revenue, past performance and business costs on hand. Putting the time and effort into preparing these figures in advance will tell potential buyers that you know what you're doing and give them more confidence in you.

Q: What tips do you have for creating a business for sale listing?

A: Providing the right information is imperative. There's a fine line between providing so few details that prospects don't take notice and providing so many that your business' confidentiality is compromised.

The key is providing the most information possible without giving away the identity of the business. It's important to give viewers an idea of the general location of the business, but don't post the street address, phone number or address in the listing. Instead, create a separate email address and phone number for inquiries from potential buyers.

It sometimes helps to tell potential buyers why you're selling the business. If you're honest, people tend to be less skeptical. Once you list your business, you might find that certain questions come up repeatedly in inquiries.

http://www.2misi.com/article/2012/07/selling-your-business-online

Successful Online Business for Sale Listing

2misi.com

Each year, thousands of business owners decide to sell their business for a variety of personal and financial reasons. Whatever the cause, selling successfully requires the owner to think creatively in terms of attracting the most potential buyers and weeding out the ones who are not really serious about buying.

To realize the most success in selling your business online, it is imperative to maximize the effectiveness of your listing. A well thought out and well written listing will allow you to attract more prospects and better sort out the serious buyers from the rest.

By keeping in mind the following "8 commandments of quality online listings," you can help ensure that your business attracts the best potential buyers, and that the selling process goes quickly and smoothly.

1. Include Key Financials

It is essential to include as much financial information in your listing as you can. Including the numbers, such as revenue can greatly increase the amount of views for your business listing, as this is the most common way potential buyers search for businesses.

Disclosing the financial information of your business in a listing is likely to build confidence in potential buyers. If you do not include the information, buyers might get the impression that you have something to hide and quickly navigate away from your listing.

2. Provide Maximum Geographic Information

Sellers should provide as much geographic information they can without revealing the exact identity of the business. Most buyers search at the county level, and by hiding the county of your business in your listing, you eliminate your listing from their search results.

Many sellers are hesitant to provide details on their business's location, but doing so will almost always result in more messages from potential buyers.

   
3. Be Creative with Your Headline

Your headline is what gets potential buyers to click on the listing in the first place. An eye catching, well thought out headline will help separate your business for sale listing from the pack. Before listing your business, put yourself in a buyer's frame of mind. It will help to draft a list of the qualities of your business that would most make you want to buy.

 If you bought the business from someone else, remember what features first made you interested. Was it an ideal location, or a great looking space? Decide what is best about the business you are selling, and prominently feature those details in a headline that effectively conveys what is special about the business.

       
4. Include the Right Contact Information

It is crucial to include a phone number in your business listing to reassure potential buyers and maximize contacts. To maintain confidentiality, though, it is not a good idea to provide the phone number of the business you are selling. Instead, provide a personal or alternate phone number people can call to inquire about the listing.

Although it can help to provide a variety of ways in which a buyer can contact you if interested, you should generally avoid including your personal email address to protect against spam and protect confidentiality. Instead, it is a good idea to create a new email address specifically for responses from your listing. If you do so, make sure you check the account daily to avoid missing any responses.

Whichever forms of contact you choose to include in your listing, be sure you have a strong follow up process. Respond to questions about your listing right away, and if prospective buyers seem serious, do not keep them waiting too long for information or they will likely become discouraged and look elsewhere.

5. Be Descriptive

The most effective way to instill confidence in prospective buyers and get them to respond to your listing is to use a generous amount of description. When a seller provides very limited details about the business for sale, buyers will probably think it is because the seller has something to hide. In order to ensure prospective buyers are confident in what you are selling, you have to appear confident.

 6. Include Pictures
 
One of the most effective ways to differentiate your business for sale listing from the rest is to include photos. While you should probably not include a picture of the outside or any obvious interior section of your business to maintain confidentiality, there are other ways to mix images into the text.

For example, taking a photo of one of the rooms of your business - making sure to capture its best features - can give potential buyers a good look at what you have to offer without sacrificing too much confidentiality.

Free online images databases such as Google Images can also serve as a useful source of imagery that you can help you create your listing to stand out from the crowd. However, be careful not to select images of any part of any specific business that is not yours. Instead, find generic images. Does the business your selling offer dining? If so, try to find a generic image of a table setting showing the kind of food the restaurant serves, for example.
 

http://www.2misi.com/article/2012/07/successful-online-business-for-sale-listing

Dealing with Your Prospects

2misi.com

By following some simple communication guidelines when selling your business online, you can ensure you don't get caught up in a communication nightmare.

 
Step 1: Be Knowledgeable About Your Business

Know your business before you put it up for sale.
It sounds simple, but the fact remains that many business owners list their establishment for sale online without having a clear grasp on how much their business is worth and what facts to communicate to potential buyers.

The first step is to get all the financial information of your business in order, including cash flow and revenue numbers that span from the time you first owned the business to the current day. After you list your business for sale, you'll undoubtedly have to field legit financial questions from potential buyers, and you won't want to come off looking irresponsible or uninformed about your own business.

When you have made yourself an expert on this basic information, you can confidently put your business on the market and begin communicating with prospective buyers.

 
Step 2: Identify Serious Leads
 

Once you have listed your business for sale online, it's time to sit back and wait for the buyer leads to come in. Unfortunately, it is likely that some of these leads will not be from serious prospects, and it will be up to you to decide if an inquiry seems legit enough for you to devote a large amount of time and effort into following up.

Once a potential buyer has made initial contact, you can ask them some simple questions to quickly gauge how serious they are about going through with a transaction. These types of questions include how long they have planned on buying a business, how they plan on financing the business and how much money they have available for a down payment. If the contact provides vague or unconvincing answers, you'll probably not want to invest too much time and effort into keeping the conversation going.

Step 3: Keep Communication Flowing Through Purchase and Beyond

Now that you have found the perfect buyer, you'll have to continue effective communication through the purchase process and after.

After the business description and purchase price have been described, the purchase agreement typically deals with how the buyer intends to pay. Most buyers cobble together a variety of payment methods to complete the sale, each of which needs to be clearly discussed and identified.

Buyers should look for a clear schedule of payments with escrow agreements attached to any payments that are due prior to final closing. If the seller is financing part of the purchase price, the repayment schedule should also be described along with collateral requirements and interest details. This can become a sticking point if the seller expects to secure a first collateral position for assets that will be held as security by other lenders.

When a business is sold, the seller makes certain promises to the buyer in the form of warranties. These warranties are an extension of due diligence for hidden threats or liabilities that would devalue the business or its assets.

http://www.2misi.com/article/2012/07/dealing-with-your-prospects

How to Successfully Buy a Business Online

2misi.com

Thinking of turning your dream of starting a business into reality? Realizing the dream of starting a business, though, can be challenging without the right know how. Most small business buyers have never purchased a business before, and it can be difficult to know where to start. Going into business for yourself will undoubtedly require large amounts of commitment and drive to overcome fear of the unknown, but keeping four critical factors in mind can help ensure success when investing time and money into a small business.

Use Online Resources

The easiest way to learn about your options is to research what's available on an online business marketplace. Newspaper classifieds include a limited amount of the businesses for sale in one immediate area, while an online marketplace is more expansive. This kind of site offers a database full of available businesses in any area, which means that you can search locally or anywhere in the country if you are considering a change in location.

Be Savvy in Dealing with Sellers

Once you've located a business that interests you, contact the business owner. Make a list of any questions not answered, and be sure to get all the information you need from the seller. For example, it is a good idea to ask the reason why the business is being sold. Also, be sure to ask the seller to provide documentation for any numbers provided.

If the business seems like a good fit after receiving the answers, ask to view the business firsthand. If possible, visit the business without identifying yourself as a potential buyer to make sure you are satisfied with its appearance and location.

Don't be afraid to negotiate. Businesses generally sell for up to 25 percent of the seller's initial selling price, so there's no need to settle for numbers presented to you at the start without question.

Follow Through with Due Diligence

Once you've thoroughly communicated with a seller and all the information checks out, it can be tempting to want to speed up the process and sign a contract as quickly as possible. While the prospect of finally owning a business is exciting, there is still a need to work out contingencies. This process is known as "due diligence."

Although the numbers might sound good to you, it would be a good idea to bring in outside professionals such as business supervisor to validate them.

Embrace Lifestyle Change

Business owners often discover a new sense of freedom and purpose. They won't have to deal with a boss, their schedules - while less predictable - can be more flexible and a great sense of pride can come from seeing the business through to greatness.

http://www.2misi.com/article/2012/06/how-to-successfully-buy-a-business-online