Why You Need a Broker Who Knows How to Market Your Business?
When selling your business, it’s important to ask how your broker plans to find the right buyer.
There are essentially two types of business buyers.
A financial buyer is usually someone looking to switch from employee to entrepreneur by “buying” a new job and lifestyle. They want to:
- Replace their income,
- Enjoy what they do, and
- Meet expenses, while supporting their family
A strategic buyer is usually another business entity looking for a company that fits their long-term goals. They want to:
- Grow their existing business,
- Get into a new area of their business, or
- Expand their marketing footprint
There are also two ways to sell a business: through listing sites (passive marketing), or through outreach programs that leverage direct mail and telemarketing (active marketing).
Some brokerages post businesses on a few sites and wait. Others – like ours – get those listings in front of as many eyes as possible, while reaching out to buyers directly.
Finding a buyer starts and stops with marketing: you’ve got to tell a story, put together the right materials, and create a customized plan – because every business is different.
For example, we once helped sell a niche manufacturing business that created screen printing and logos for train museums. By examining how their systems and processes might apply to other sectors, we effectively customized our marketing approach and attracted a buyer in the airplane industry.
Remember, to maximize potential buyers and find the right one, it’s vital that you work with a broker who knows how to market your business.