One question that is often asked by people who are looking to sell their business is, “Can I sell my business without using a business broker?” Well, the answer is yes, and selling your business privately without using a business broker will ensure that you are able to make the maximum amount of profit from the sale of your business.
When you decide to use a business broker to sell your business, you will be placing yourself at a distinct disadvantage. Firstly, the sale will happen entirely on your terms, as the broker will have their own ideas and agenda. The other reason that this method is not preferred is that business brokers typically charge very high commission fees, which could take a significant percentage of the money from the sale out of your own pocket.
By selling your business privately, you can avoid these problems and ensure that you see the maximum amount of profit possible. In addition, it is actually quite easy to sell your business privately, and below you can find out exactly how to go about it.
List Your Business on Private Business Sales Websites
The first step to selling your business without using business brokers is to search online for private business sales websites or for sale by owner websites. These sites will allow you to create a fully customised listing for your business for a fraction of what you would typically have to pay to a business broker for the listing or sale. You will most likely have several different options for paying for the listing, including the option to pay nothing until the sale is completed, at which point you will still only have to pay a flat fee instead of a percentage like with broker commission fees, except much less.
List Your Business on Major Classified Sites for Exposure
While it is most likely that potential buyers will find your business listing on the private business sales websites, you may still want to consider creating listings on the major classified ad websites as well. Most people looking to buy a business will probably not take these sites too seriously as they are not dedicated business sales websites, but it is still a great way to increase your exposure, and the fees for placing an ad are typically free so it’s definitely worth a try.
Negotiate with Potential Buyers Directly
After creating your business listing, you can sit back and wait for potential buyers to start contacting you. Once they contact you, they will want to look at your business plan as well as reports on your profits, losses, etc. So it is important that you have all of this information prepared beforehand and ready to show to those who are interested in buying your business. Of course, you may want to be a little picky and try to judge the seriousness of the interested party before letting them look through your books. At this point, you can then begin to negotiate the sale directly with the potential buyers.
Have Contracts Drafted By Your Lawyer
After you have negotiated the sale and come to terms that both parties agree to, you will then want to have your lawyer draw up all of the necessary contracts and paperwork. This is the only step that you cannot do on your own, as it will be necessary to have the contracts drafted by someone with an intimate knowledge of the law to ensure the sale is completed properly and completely in line with the laws. After the contracts have been drawn up, all that is left is for both parties to sign them and complete the sale. You can then sit back and be pleasantly surprised at just how much money you saved by avoiding the high commission fees charged by business brokers.
Sell on Your Own Terms
The best part of selling your business without using a broker is that it allows you the freedom to sell your business on your own terms. With a broker, it will be much more difficult to dictate the exact terms that you require, but private business sales will allow you to be in complete control of the sale from the beginning to the end.