How to Make Your Business Stand Out from Others on the Market
Did you know that approximately 80% of all businesses listed for sale never actually sell? It’s a sobering statistic, but there’s good news – your business can be among the 20% that do sell, and at a price and timeline that meets your goals.
Here’s how to make your business stand out and fetch the highest price in the shortest amount of time:
1. Price Your Business Right
Many sellers start with an unrealistic idea of what their business is worth. While it’s natural to value your hard work, buyers are focused on financials and market trends. At InterMountain Business Brokers, we specialize in pricing your business at the maximum possible value while still keeping it attractive to serious buyers. We use proven valuation methods to position your business competitively and ensure it gets the attention it deserves.
2. Expand Your Buyer Pool with SBA Lending
The more buyers who can afford your business, the better your chances of a fast and profitable sale. One way to expand your pool of buyers is to make sure your business is eligible for SBA financing. SBA-backed loans make it easier for qualified buyers to purchase your business with less upfront capital. InterMountain Business Brokers works closely with trusted SBA lenders to determine eligibility and help position your business as a financially viable option for a wider audience.
3. Provide Complete and Transparent Information
Serious buyers typically filter listings based on specific criteria like price, adjusted EBITDA/SDE, FF&E value, and inventory levels. If your listing lacks any of these key data points, it is likely to not stand out to buyers. Transparency and clarity are crucial.
Additionally, understand that buyers often use industry multiples as a quick reference. For instance, if your business shows $100,000 in profit but is priced at $800,000, that’s an 8x multiple, which will likely appear unrealistic unless fully justified. High multiples can make buyers perceive the seller as unreasonable, turning them away before they even inquire.
4. Offer Seller Financing
Seller financing is part of most successful transactions. If you’re unwilling to offer any seller financing—and your business is not eligible for SBA lending—you significantly limit your buyer pool. Offering even partial seller financing shows confidence in your business and provides flexibility to buyers. Keep in mind that buyers paying 100% cash will typically expect steep discounts in return.
5. Highlight What Makes Your Business Unique
What sets your business apart from the competition? Is it your customer base, your reputation, your niche market, or your team? Buyers want to know why your business will continue to thrive under new ownership. Emphasize the strengths that will endure after you step away.
Also, consider the training and transition you’re willing to offer. Buyers gain confidence when they know the current owner will support them during the early stages of ownership. This can make a significant difference in the perceived value and success potential of the business.
6. Think Like a Buyer
Finally, put yourself in the buyer’s shoes. Would you buy your own business at the price you’re asking? Are the systems in place for a smooth transition? Is your business reliant on you, or can it thrive independently? Buyers look for businesses that are organized, well-documented, and capable of running smoothly without being owner-dependent.
