5 Tips To Selling A Niche Business In Greater Orlando
After meeting with thousands of business owners, Business Brokers in Orlando often hear the question, “Is my business saleable?” We hear this especially when sellers feel they have a business only they alone can run. They might feel they hold too much information to transfer to a new owner, or that their business is so rare few would have the experience to run it. Another reason is the licensing required to operate the business would prevent other potential owners from buying the business. Lastly, it is possible they have too much customer concentration where over 10% of the business comes from one source.
The reality is that all kinds of businesses for sale in Orlando area with every level of difficultly can sell. The buyers that Orlando Business Brokers encounter are typically all looking for the same things when buying a business in Central Florida. They look for businesses that have provable income for the last few years and they look for businesses that are growing or they at least have potential to grow.
We meet many business owners that are not looking to sell, yet realize in the future selling will be their only option to exit the business. Many business owners worry that their companies are not saleable. Over the years we have found if a business earns an above average and provable income on the tax returns, we can sell that business.
There are some extra measures that business owners can implement to enhance their niche businesses and attract more buyers looking to buy a business in the Orlando area:
1) Make sure your business has a future.
Many business that we see have growth potential. Depending on how a business owner looks at their scenario, there are dying industries and dying businesses where the owners claim low performance is a result of a dying industry. It is all in how one looks at it. As an example, when the lightbulb was invented one would have though the candle stick making industry would be completely out of business. After all, people no longer need candles for light. Was it game over for the candle industry? Almost every big box store that sells home wares will sell candles. The candle industry did not die but it change. Make sure your business changes with the times and has a future.
2) If your business is a niche business where you alone are the sole expert, you can do several things to still help the sell business in the Central Florida market.
The most popular two are to a) bring on another key person who can be the expert for the business or b) be prepared to stay on with a new owner for an extended time period to help train and familiarize the new owner with the new business. There are other options ofcourse but these two of some of the most frequently used.
3) Make sure you have a diverse customer base.
Nothing scares a business buyer more than a business with only a few key customers. Some business owners that we meet with have businesses where one customer represents over 80 percent of their customer base. While we can still sell those businesses we can definitively say that the more diverse a business’s customer base is the more comfortable an incoming business buyer will be. The reason is simple, when buyers buy businesses they worry that some customers might leave……… for numerous reasons and most beyond a buyer’s control. Having a more diverse customer base makes a buyer feel as though they are increasing their odds of keeping more customers. Business Brokers in Orlando can still sell businesses with just a few customers but for the business owners looking to increase their desirability why not go out and get some additional customers! It will make the business more exciting and more profitable.
4) Produce a processes and procedures handbook for the business.
When we as business brokers are selling businesses in the Orlando area few things get buyers more excited than a business owner who has written everything down. One might be surprised by how many questions a new owner will have such as: who do I call to fix the big machine, who fixes the air conditioning, who is the contact person for each customer and vendor, how do I reach the landlord in an emergency and let’s not forget where is the water shut off valve? Business buyers know that their time with the business seller after a business sells might be limited. Having this information available lowers the stress of buyers so they do not feel as pressured to learn every single who, what, and why in just a few weeks.
5) Prepare The Business For A Potential Sale To A Competitor or Industry Buyer.
There are some occasions where selling a business to a competitor in the same industry is the best or perhaps easiest option for a seller. To help prepare your business for sale make sure you can show due diligence documents to potential buyers in the most confidential way possible. Try removing the specific names of accounts to prevent easy identification but still show their performance. It also helps to have a talented staff in place. The customer base can be a big attraction for an industry buyer but at the same time a talented staff can be just a valuable. It helps to have good accounts and a talented staff that could potentially stay on to work with a new owner. Targeting others in the industry located in other communities could also be great options as buyers.
If you are a business owner and find yourself asking, “can I sell my business in the Orlando area,” call us at 407-478-4101 or check out our website at www.crowneatlantic.com. The business brokers at Crowne Atlantic sell businesses all over Central Florida.
If you would like more information on selling your business in Orlando or in the Central Florida region, call the Business Brokers at Crowne Atlantic serving the Greater Orlando area at 407-478-4101.
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