Advertising Your Business – Why Is It Important?
MARKETING IS KEY IN A QUIET MARKET:
In a quiet market there are no longer plenty of buyers out there so your broker has to have strong skills to find them and work hard to get you a result. Key skills include good old-fashioned customer service & top-level marketing programs.
WATCH OUT for brokers who say you can get a good result by cutting back on your marketing spend. In a quiet market you need to attract every person who is even vaguely interested in your business.
In many cases your business is more valuable than your family home, yet many business owners do not feel it necessary to invest any money into advertising their business through every media outlet possible, and relay solely on their business brokers word of mouth advertising.
Selling a business can take time, so you need to make sure you attract and negotiate with suitable buyers from the start. If you don’t the process could blow out to multiple months and result in you receiving less than market price.
The first few weeks of selling your business are critical. Most buyers are monitoring the market and waiting for suitable businesses to become available. Your best buyers are the ones that show interest as soon as the business goes on the market. They are seeking to invest in businesses with sustainable incomes, with definable risks and good returns. They will be either speculative buyers looking for a bargain or more conservative buyers looking for a secure investment. They are sophisticated and unlikely to pay more than the market value of a business.
If you overprice your business you will first attract buyers who are looking at larger scale businesses. They will not see value in your business. At the same time you will not attract buyers who can afford the true value of your business because of the high advertised price.
Inevitably the business stays on the market with little interest being shown. You therefore drop the price to the true value of the business. Now buyers who can afford it will notice the business but will perceive it to be flawed because it has been on the market for a long time. This will prejudice them against buying it.
With no alternative you drop the price to less than market value to encourage interest. The property is now snapped up by bargain hunters.
If you do not invest any money into advertising your business, like if you were to sell your home or commercial property, you will never achieve the best possible price for your business, as you will not be reaching your full target audience, as only a handful of buyers in the marketplace will know it is for sale. ‘Remember – You cannot sell a secret’