If you’re in the market to purchase a business, you don’t need to see a “FOR SALE” sign flashing out front to make it happen. You just need the right approach. The keys to approaching a business owner about selling are preparation, preparation and more preparation.
Whether you arrange to meet with the business owner one-on-one or find a business partner to help devise a solid strategy and present a proposal, you’ve got to do your homework if you want the process to play out in your favor. And just like you’re back in school, completing this homework assignment will require:
- A Plan
- Thorough Research
- A Clear, Effective Communication Style
Continue reading as we elaborate on each of these points below.
If you’re considering the purchase of a business, there’s a good chance you already know a few things about it. Whether you’re experienced in that particular industry or it’s a field you’ve dreamed of going into, your plan for purchasing the business should reflect all of your existing knowledge and expertise. You’re going to want to convey your competence to the current business owner.
Obviously, money talks, so you’ll also need to make a detailed record of your financial situation, including the state of your credit, financing you can secure and all the assets you can liquidate in order to acquire the business.
Knowledge is power, and you should arm yourself with every fact about the business you plan to purchase. How long has it been around? Is it a franchise? Who is the primary customer base? What are the operating costs? What do sales look like? How about profits? What are some of the challenges standing in the way of growth?
Knowing the answers to all those questions prove to the current owner how serious you are about making the purchase and taking the reins.
Once you’ve gathered all the pertinent information about the business and put all your financial ducks in a row, it’s time to actually approach the business owner. What method of communication will be the most effective? Writing a formal letter? Showing up and simply speaking to the owner? Employing a skilled intermediary?
If you’re uncertain as to how to approach a business owner about selling, allow the experts at Ashley Capital Group to guide you through the process. Whether you’re looking to buy a new business or develop an exit plan from your current business, we’ll put our years of experience in mergers and acquisitions to work for you. Contact Ashley Capital Group today to schedule a consultation!