Moving is never easy for a small business owner. It often means selling your current business and buying another in your new home town. Let’s be real – it’s a monumental task that impacts every aspect of your life. That’s why hiring a business broker can be a smart move.
Did you know that 90% of businesses listed for sale, never sell? Finding genuine buyers and sellers in your area is a real challenge. While you focus on rekindling relationships with your family members, your local broker will step in and get to work on buying or selling your company for you.
So, here are the benefits of hiring a local business broker when you’ve decided to move closer to your family. Take advantage of these to get the most out of your relocation.
What Is a Business Broker?
Before tackling how they can assist you, let’s briefly explore what they are.
A business brokerage helps you buy or sell businesses. A broker is a qualified individual with a lot of local experience who works with you to complete these transactions.
According to Business Brokerage Press, there is 1 brokerage firm for every 100,000 people in the US or 1 firm per 1,850 businesses. Some firms have licensed brokers, others don’t.
There are many different types of broker, and they have different specializations. In this case, you’ll be searching for one who focuses on small businesses for sale or to buy.
This will include everything from professional practices, to franchise opportunities and retail stores. When picking a broker, make sure you find one who knows your niche business.
6 Reasons Why a Local Broker is a Good Idea
The role of a business broker is to simplify an otherwise extremely complicated and time-consuming process. Here’s how they can help you.
#1: Intimate Knowledge of The Local Market
Your business brokerage will know the local business landscape, how things work, and how to get fair market value for income-generating companies.
This is valuable when selling and buying – in that your broker will know how to price your company for sale, and where to find a good deal when you’re looking to purchase.
A strong understanding of the local market is especially important if you’re looking for a fast transaction because you’re moving to a new area.
Without a local broker you might spend months trying to sell to buyers who aren’t serious or don’t have the money. You may also end up buying a problematic company in an undesirable area.
#2: They Will Find You Qualified Buyers
Your local business broker is motivated to find you a quick sale, because they usually earn 10% commission on it.
One of the biggest issues you will face without a broker on your side, is the sheer number of people contacting you about your business – with no real intent to buy it.
Most prospective buyers want to own a business, but have never bought one before. They don’t know if yours is the right one, and they don’t have expert help to facilitate the process.
The second largest benefit is your broker’s ability to pre-screen and vet qualified buyers. This saves you a lot of time and money. They act as intermediaries and turn away the folks that are not eligible to buy your company. The only people you end up meeting are serious buyers!
#3: They Will Help You Find the Right Business to Buy
At any given time there are hundreds, even thousands, of businesses for sale. When you’ve just arrived in a new area, you’re not going to know which business is best for you.
A local broker will already know which companies are available in your chosen niche. They’ll sit down with you and chat about your talents, skills and goals.
They will also review what you can afford and will help you with financing. Every business they recommend will have been extensively researched and matched with your needs.
You’ll know for sure that the business isn’t secretly failing, or has some major flaw you didn’t see upfront because you didn’t do your due diligence. You’ll get good advice, and a fair deal.
#4: You Get Additional Time to Maximize Your Business Value
Whether you’re buying or selling, a broker gives you the time you need to focus on your business. That means that you can use the time to amplify its value with a new business website.
A website means 24/7 visibility and increased sales beyond business hours.
- If you’re selling your small business, a new website design will add that professional touch that will attract the right kind of buyer. Buyers these days want a strong digital presence that will help them sell online.
- If you’re buying a small business, a fresh web design will be the cake-topper that announces you as the new owner in your area. Have a powerful online brand that matches your real-world presence, and promotes your products and services.
With a broker on your side, you can use a done-for-you service like Yahoo Web Design to elevate the value of your company. Our team does it all; we design, build and write the copy for your website – all for an affordable monthly fee.
#5: Improve the Efficiency of Negotiations
Where your business broker will really shine will be when you reach the negotiation stage of your transaction. Because they’re a third party, they can cut to the core of conversation and speak plainly for the clients that they represent.
This makes their negotiating power much more formidable than yours. Negotiations with a broker involved are usually orderly, swift and beneficial for both sides.
Your broker will make sure the sale happens at a fair market value, and they may even use their extensive network of contacts to speed it up (accountants, lawyers and financers).
Quickly settle on good terms with your buyer or seller, and start that new life you’ve moved away to pursue. Any problems and your broker will work to solve them for you.
#6: Assist You with Complex Paperwork
Your local business broker will assist you with your legal paperwork, and the mountains of boring admin work that often come with ownership transfer and sales.
Being highly experienced means that they will be able to review complex franchise opportunities for example, and decide if they’re a good fit for you.
During a sale or a purchase there are licenses, permits, fees and other details that if missed can cause you big trouble in the future. With a broker, you avoid making those beginner mistakes.
Remember these 6 benefits before trying to facilitate a deal yourself. A business broker has intimate knowledge of their local market, they can pre-screen and vet qualified buyers or sellers and they improve negotiations, paperwork and the speed at which deals are made.
Plus, when your small business decides to use one, you get the time you need to amplify your business value with a new business website.
With Yahoo Web Design, our all-in-one service means that you get website design, WordPress development and expert copywriting for a superior online business presence. We’ll even manage your site for you, so that you can focus on doing what you do best – running your company.
As you pack up your life and move closer to family, you’ll be safe in the knowledge that you’re leaving behind a strong business, and heading towards a brighter, better one.
Yahoo Small Business helps make it possible.