A Step-by-Step Guide to Selling Online

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The decision to sell can be brought on by many factors, including a change in location, finances, or lifestyle. Whatever the reason, sellers should be aware of basic steps that can make the transaction more efficient and effective.

we are noticing a growing number of would be business buyers browsing our site. Unfortunately, we also see many business owners attempting to sell online using largely ineffective methods. These situations are usually the result of a lack of research and preparation before listing a business, and can greatly increase the amount of time a business is on the market, can make the selling process more frustrating than it should be, and can result in a much lower selling price.

The good news is that if business owners looking to sell can devote time to researching proper selling methods and follow simple steps, the process can be a breeze.

Step 1: Preparing to Sell Your Business

As with any type of business, selling is not something to rush. Ideally, many months (if not years) should come between making the decision to sell and putting your business on the market. This allows you to properly assess and document the financial situation of your business and to create reports detailing potential growth and revenue. It will also give you enough time to modernize any outdated systems that might deter buyers once the business hits the market.

Remember - just because you have started the selling process and know you will soon no longer be responsible for the business does not mean you don't have to keep it up to date while it is on the market. It is important to put yourself in potential buyers' shoes and consider the type of business you would like to purchase if you were currently in the market.

Step 2: Providing the Right Information

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

Do tell potential buyers why you are selling the business. If you are honest, people will tend to be less skeptical, and you will probably sell the business faster. If your listing makes it seem as though you are hiding something - even if you aren't - potential buyers will be quick to pick up on it and shy away.

Once you list your business for sale, you might find that certain questions come up repeatedly in inquiries. This can serve as a good guiding point for what you should change or add to your listing.

Step 3: Screening Buyers

Another potential issue to prepare for is receiving inquiries from people who are not serious about buying. Sellers often encounter people who have the dream, but no realistic intention of going through with a deal. After all, there are a lot more people who are interested in becoming a business owner than people who are actually capable of becoming one.

It is difficult for online marketplaces to screen potential buyers, so sellers have to determine whether prospective buyers are serious or just casually browsing. The best way to do this is by selling potential buyers direct questions about how long they have planned on buying, how they plan on financing the business and how much money they have for a down payment. This kind of informal interview will allow you to determine early on whether the prospect is worth pursuing.

Step 4: Negotiating and Closing the Deal

Once you have found a promising buyer who checks out, the issue of negotiation will undoubtedly come up. Consider this: In a typical business sale, the negotiating skills of the buyer and seller can result in dramatic swings in the final selling price - regardless of how diligently the seller has prepared the business for sale. If the seller isn't up to the task, all the work that has gone into the listing can be undone in a single negotiation session.

And unfortunately, that's just what is happening to many sellers who decide to sell on their own. The good news is that it doesn't have to be that way. Equipped with a basic understanding of the negotiation process, business sellers acting independently can learn how to stand their ground and get they deserve. Other business intermediaries, including business supervisors, and/or attorneys and accountants can be valuable resources during this phase of the process.

The overarching principle of successful negotiation is doing so from a position of strength. Business sellers should come to negotiation fully prepared with well researched, documented valuation information. This way, you will have a strong basis for sticking to or very near the price you are requesting.

Listing on an online marketplace also helps negotiation in that it stirs competitive interests from possible buyers. If buyers can see there is a lot of activity surrounding a listing it will only help to create more demand for your business.

Once all the specifics have been properly taken care of, you can rest assured your business will go on successfully while you pursue ownership of a new establishment or move onto other ventures.

http://www.2misi.com/article/2012/07/a-step-by-step-guide-to-selling-online

Three Hotel Acquisition Tips

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http://www.2misi.com/article/2012/07/three-hotel-acquisition-tips

Buying a hotel can be a complicated process, even with previous experience owning and running an establishment. The business for sale marketplace is very dynamic and each hotel is so unique that both pros and novices alike must do extensive research and preparation before diving into a deal.

With the following three tips as starting points, buyers can be sure to find out what they need to know to get well on their way to owning the hotel of their dreams.

Understand Your Parameters

One of the biggest mistakes people made when purchasing a business is not having a solid grasp on how it will affect their lives. It's not uncommon for hotel buyers to get so excited by the prospect of owning a new business that they rush into it without asking themselves some very important questions, such as:

Will owning this business lead to a lifestyle that made me happy?

It's no secret that owning a hotel can be a lot of work, but still, many buyers aren't aware of just how life changing and time consuming it can be. First time buyers might have an unrealistic view of what a hotel owner needs to put into the business, believing the staff will be able to do most of what it takes to keep things running smoothly and profitably. Then, when they find themselves doing tasks they never thought they'd have to do, they might become disillusioned and overwhelmed, jeopardizing their health and the health of the business.

Do the financials make sense?

For one, buyers need to make sure they'll be able to secure a loan to buy the hotel, and that they are confident the cash flow from the purchase will be able to cover the loan payments. One essential consideration is whether or not the seller of the hotel is willing to finance part of the sale. If not, it can be extremely difficult to obtain a sufficient loan, and learning about this issue later rather than sooner will just lead to unnecessary headaches.

Even if a buyer determines that accessing a loan won't be a problem, there's still the issue of whether or not cash flow from the business will be adequate to support the type of lifestyle desired. This is why it's so important to make sure to get accurate, detailed financial reports from the seller, and to come up with a solid estimate of how much money is required each month to live a secure, satisfying life.

In addition to basic financials, buyers should be sure to check fundamental business metrics such as the occupancy rate of the hotel, as well as room rates. To put the business fundamentals in better perspective, potential buyers should investigate the room rates at nearby hotels for comparison. If possible, interested buyers should also stay at the hotel as a guest for a few days before approaching the seller to get a first hand look at hotel operations, customer satisfaction, and occupancy rates. All of this takes a lot of time, but it's essential. Buyers are much better off putting the effort in before taking the plunge into a purchase than after they are already tied to the business.

Get Familiar with the Market

It's more likely that a hotel purchase can go wrong if a buyer doesn't have a thorough understanding of the market both locally and nationally, including a list of all possible properties that meet buying criteria and knowledge of business for sale trends and cash flow and revenue multiples.

Negotiate with Patience

Negotiation is an essential part of any business for sale transaction, but one that is too often underutilized by business buyers.

Businesses typically sell for 10-20% less than a seller's initial selling price, so there is no need for a buyer to be shy when it comes to asking for a lower price. It's likely the seller won't jump at the initial offer, so in this case patience is key. Buyers shouldn't budge significantly on their offers, but at the same time they should not be rigid to the point of forcing sellers to turn elsewhere. In addition, buyers need to ensure the seller will allow them to retain key employees and supplier relationships once they take over, and confirm precisely what level of training, advice and oversight the previous owner will provide after the transition. As such, the negotiation process can take a while, but it typically pays off in the end.

During the negotiation process, though, sometimes deals fall through. It's bound to happen. For this reason, buyers should avoid becoming too attached to a single hotel. If they do, they'll likely be devastated when a transaction doesn't work out, and be left without a "plan B." Instead, they should keep a running list of "key properties" that they frequently revisit throughout the process and can turn to if their top choice deal fails to pan out.