Selling a Business Privately is the Smart Option

Selling your business privately saves money. Since you won't be working with a broker, there will be no need to pay a commission. Not only will this result in more profit for you, more importantly, it may help you set a more attractive price for your business. The difference in price may be enough to help you achieve a quicker sale.

Sometimes when selling a business the owner will incorporate the broker fees and commissions into the asking price. This method will almost certainly scare off any potential buyers. You will also need to be able to justify your asking price, so make sure this is possible otherwise a buyer will see through this and lose interest.

Selling a business privately may cost some money to advertise your business sale, but these costs will be negligible compared to broker commissions. When utilizing the services of a business broker, you can expect to pay anywhere between 4% and 9.5%.

Selling your business privately allows you to use your specialized knowledge of your business to help make the sale. Whether or not this benefit is relevant to you really depends on the type of business you're in. The more highly specialized and technical your business is, the more likely you are to have specialized knowledge that will help you sell it. You're also more likely to know your potential customers, how to find them and how to talk to them.

When you're selling a business privately, you're highly motivated to sell. Depending on the reason causing you to sell your business, being personally involved in the sale will allow you to apply your passion and energy to move things along. However, you should be brutally honest with yourself about your ability to remain professional and detached throughout the entire process.

Selling your business privately puts you in control and gives you ownership of the process. As an entrepreneur and business owner, you're probably very comfortable making your own decisions. If you are confident of your abilities to handle any accounting, taxation and negotiation issues that arise in the sale process, you'll probably be more comfortable selling your business privately than working with a business broker.

Depending on your individual circumstances, selling your business can be a significant life experience. When you're deciding whether to sell your business privately or work with a business broker, take the time to choose wisely. It's a decision you'll be living with for quite some time.