Businesses Bought and Sold

As with anything that is bought or sold, purchasing a business is based largely on perceived value.  It must be a good fit in the life of the new owner in ways that will almost always go beyond financial earnings.  Of course, it has to measure up to the standards set by lenders, but it also must satisfy lifestyle demands of the buyer, because as we know,  and he or she knows, the purchase of a business will dramatically change the life of the owner.

As a seller, you may or may not choose to disclose your personal reasons to sell your business.  Again, as with selling anything, listing all the woes you’ve experienced with it will not help any prospective buyer to see the value.  Your lifestyle is likely very different from that of the buyer, and the parts that didn’t work for you might be just what makes it a perfect fit for him or her.

As they say, attitude is everything.  Focus on the positives in your business.  If asked, you may want to simply focus on the excitement of the new shining opportunity available to you and after all, one business at a time is enough, isn’t it?

The price your business commands is important, and as a seller, the higher the price the better for you, but beware of your personal attachment to it.  After creating it from the ground up, or just pouring yourself into it, and feeling it is a part of who you are, sellers are in danger of inflating the price they think is reasonable.  Think of your favorite hoodie sweatshirt from high school.  The edges were frayed, the hood was ripping, and the color was faded, but the value you perceived in it was still great – after all, it had been through a lot with you!  Hopefully your business is in better shape than your sweatshirt, but you see the point.  In either case, when it’s time to part ways it’s you and only you who calls that shot, just as it is the buyer, and the buyer alone who ultimately makes the decision to buy. 

Best of luck to both of you!