As the owner of your small business you have worked long and hard, and deserve to be rewarded for your efforts. As a buyer, I am happy to reward you for your efforts. I might even pay you a premium, but remember it has to make sense.
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Can I:
– Make a reasonable living wage?
– Service my debt?
– Have sufficient reserve to justify the risk and satisfy the bank’s reserve requirement?
As a buyer I understand that sellers will come to the table with specific wants, needs and desires that must be satisfied when selling their business. This is the fund with which you are going to start your next venture, pay off your debts, retire comfortably. You want as much as you can get, who doesn’t? Unless I can satisfy the three requirements above, or feel the rewards of owning your business justify paying more, why should I buy it?
Just because you have a dollar amount that you need in order to move to your next big adventure, doesn’t mean you will get it. Listing your business for sale with an unrealistic expectation of selling price can lead to frustration and disappointment. Buyers will look at your business and move on without even inquiring. If they do make an offer, you will consider it to be ridiculously low, when in reality it is probably pretty fair.
An owner who waits until the moment they think they are ready to sell, to learn what a professional thinks about the selling price and salability of their business can be making a huge mistake. Take proactive steps and get a business evaluation done before it is time to sell can better prepare for your next adventure with realistic expectations. There may be things you can do to enhance the value of your business, adjustments that can be made to your retirement plans, or timetables can be changed to accommodate your end goal.
Sometimes reality can be a cruel thing. Ignoring it is not wise. Understanding reality is key to any decision you make.
Fischer Business Consulting 