your password has been reset successfully, Please login again.

7 things to keep in mind while dealing with business purpose

Selling or buying a business is not easy. You need a broker who can help you out. Read to know more about it.
BY Sanjana Surbhi
Feature Writer, BusinessEx
May 23,2018

Most of the new start-ups fail during first two years of operation. To save their businesses, entrepreneurssometimes plan to sell it. In the year 2017, the company BizBuySell recorded9,919 sales, up from 7,842 in 2016. A nearly 27% increase from the previous year. Selling a business is not easy. It takes its own sweet time.

But first, you need to answer why doyou want to sell your business? This will be one of the most common questions asked by your buyers. So, sort out the reasons for selling yourbusiness.

General reasons for selling a business:

  • New opportunities
  • Capitalization
  • Poor performance
  • For a break/change

Followed by this you need a professional broker who can help in getting a reasonable price and sell your business in a limited time period. Who is a business broker?

A broker is a person who acts as a transfer agent or intermediaries who can help and assist you in buying and selling a business or deal. They will charge you money for the service provided. According to a website, they will estimate the value of the business; advertise it for sale with or without disclosing its identity. Both, the number of startups-and brokers have increased. Selling or buying a business can be a very important decision that might change your life.

How does a business broker work?

Brokers play a valuable role by offering you advice, guidance and other resources that required for the transaction. They are well connected with professionals, accountants and other important personalities of your industry and will act as intermediaries. They will advertise your business on their websites and later deal with the buyer for your business. They do all the legwork needed for the sale of the business. In exchange for coordinating these transactions, a broker will charge 10% commission.

So here areseven things to keep in while dealing with a business broker.

  1. Experience Before hiring any broker, check the years of their experience. Keep a track of how many deals they have cracked till now and how are they functioning. You can ask them about it by directly questioning them or check their website if they have any. You can also talk to the old clients. Anyway, a broker will show theircapabilitiesand achievements to impress you. So, check their background before taking any further steps.
  2. Service Charge No one works for free and so does the broker. He will ask for a commission based on a portion of the price paid at closing for your business. Usually, the commission is 10 percent. Do ask them what other fees he will charge. You must be clear on the money aspects.
  3. Web presence Check the website of your broker. From a website, you can get to know a lot of things. Try using it and check how it works, isit simple to use and all what all businesses it offers.
  4. Broker's qualification Here, from qualification I meant, whether it is certified or not. Verify its membership. Also, see its customer base if possible.
  5. Connections A broker with many contacts will bring you more offers. Select a business broker who has good connections in your industry so that you can have options and better deals.
  6. Take interest in your deal Its a duty of the broker to take interest in assisting you. He must inform you about all the deals that come up to them and help you in price negotiation. Many fraud brokers are out there. So, you need to be careful and always go with a reputed broker.
  7. Have a look at the marketing plan You need to have a marketing planning to sell a business. A responsible broker will definitelyhave a marketing plan. See the plan and strategies and also check whether they are able to make you understand or not. Think as a buyer and then act accordingly.
  8. Besides all these, keep in mind that the broker is your representative and only he can help you by providing buyers and too from your industry. There should not be any communication gap; its the duty of your broker to communicate properly.

So, to get the best buyer you need to have the best broker who must be proactive and communicative. And keep the above points in mind to find the best broker.

Please add your Comment
SIMILAR Articles
October 15, 2018
In the vast internet world, data is an easy way of damaging and disreputing someone. In such a scen ...More
By Jaspreet Kaur
October 15, 2018
Deck headline- learn the actual causes of shattering down of Indian economy and effectual ways to mi ...More
By Jaspreet Kaur
October 12, 2018
Increase connectivity with your customer by employing an effectual email marketing campaign ...More
By Jaspreet Kaur
October 12, 2018
know how data reports can help to improve earning calls of organizations ...More
By Jaspreet Kaur
October 10, 2018
Incredible business ideas cannot lonely help to overtake in the rat-race ...More
By Jaspreet Kaur
October 10, 2018
Transitional time has come as eminent leadership roles are taken by women ...More
By Jaspreet Kaur
October 10, 2018
Learn essential leadership lessons and become an effective entrepreneur as well as a leader ...More
By Jaspreet Kaur
June 29, 2018
Failure is a part of being an entrepreneur but the ability to back up and try again makes a successf ...More
By Sanjana Surbhi
June 28, 2018
There are many such inspiring and motivational stories that will boost you to keep going. To get mot ...More
By Sanjana Surbhi
June 27, 2018
The more you know about where your time goes, the more you’ll be able to hold yourself accountable ...More
By Sanjana Surbhi
June 22, 2018
The key to any successful business is the ability to make right decisions ...More
By Sanjana Surbhi
June 20, 2018
Textile market place covers a wide range of cloth product and accessories such as fibre, yarn, text ...More
By Sanjana Surbhi