Business brokers, agents, and business advisors share their reasons why some small businesses don't sell. Reasons vary in this BizBen.com Discussion Post.

DUBLIN, CALIFORNIA, UNITED STATES, January 31, 2022 /EINPresswire.com/ -- BizBen.com recently posted a discussion topic asking business brokers and agents to share their beliefs about why some small businesses and franchise resales fail to sell. Each contributor had their take on the subject based on their individual experiences, and the post can be summarized into five key points.

BizBen.com Founder and CEO Peter Siegel, MBA, states, "Not all small businesses sell. Business brokers share their reasons and feedback in this enlightening BizBen Discussion post."

The business is not accurately represented

Sales and advertising go hand-in-hand, and many businesses for sale forget how important it is to create an enticing listing. A potential buyer wants to know everything about the company, and the seller should make sure that the listing is thoroughly detailed and answers many questions. Some important details are the type of location, number of parking spaces, storage capacity, foot traffic, etc. The owner should already know all the information about the business, and it is best to share it with potential buyers.

2. The business owner is not transparent

Anyone who wants to buy a business wants to be sure that they are making an informed decision before making a commitment and taking on considerable responsibility. Joe Ranieri, a Business Broker from California, stated, "buyers in today's business climate are more weary and slow to make decisions, so a seller should disclose as much information as possible." Even if a business is not profitable, the seller should still be transparent about the situation. A business without profit does not always mean that the business wasn't successful. A buyer with experience in that industry can recognize the flaws and know what steps to take for the company to generate proper cash flow.

3. The selling agent lacks experience

Entrepreneurs who want to sell their business should definitely seek an agent or broker to help them facilitate the process. A selling agent has the proper resources to get the business on multiple listing platforms and get the business viewed by potential and qualified buyers. A business broker with minimal experience may not be aware of the best strategies, or they may not have enough knowledge about the industry.

4. The business is too unique

While owning a unique business is excellent, there may be challenges when it comes to selling it. A discussion comment from Timothy Cunha said, "The more specialized a business, the fewer potential buyers and, despite all the efforts of a broker, there just may not be the right 'fit' with potential buyers." Timothy then discusses a situation he experienced when trying to sell a swim training facility. He mentions that the previous owner generated much success because he was a swim coach, and he would provide the swim lessons. A potential buyer would therefore have to be someone who has similar experience and have interest in buying a business.

5. Seller expectations are too high

An anonymous broker from California said, "I think by far the biggest reason that businesses don't sell is that the seller's expectations are not in line with the marketplace. A good broker should spend considerable time upfront to determine the value of the business." When the seller has a clear understanding of the value of their business, they can be better prepared about what to expect from potential buyers, or they can determine if they want to hold off on selling. If the seller wants to receive higher offers, they can take steps to improve the business, like remodeling or try and boost profits for a few months.

Starting a small business is no easy task; whether it's the owner's first business or their 50th, every business will have its obstacles. Entrepreneurs who start small businesses and individuals who buy a business take on a lot of responsibility and wear many hats because they are self-employed. Every small business is a unique entity, and the fate of the business is entirely unknown. Small business owners may reach a point in their journey where they decide that it is time to sell the business, and knowing these five challenges beforehand can help the owner be better prepared. Based on the advice from brokers, it is clear that the best strategy to sell a business is to work with an experienced agent that will walk you through all the steps to have a successful sale.

About BizBen.com

Founded over 25 years ago, BizBen.com is an online portal of business buyers, owner/sellers, business brokers, and advisors interested in buying or selling small to midsize businesses in the United States. There are hundreds of new listings and updates daily, and the site reaches thousands of returning viewers. BizBen.com continuously shares new listings as well as helpful resources for business professionals, such as blog and discussion posts. The blogs and discussions cover a wide variety of topics, and the discussion posts allow other entrepreneurs, brokers, and agents to contribute and share their personal insights on the topics of buying and selling small businesses.

Anyone interested in buying or selling a business can get in touch with the experts at BizBen.com by calling directly at 888-212-4747.

Peter Siegel, MBA
BizBen.com
+1 888-212-4747
email us here