Real Estate Meets Small Business: Sell Both Like a Pro!
Selling your small business and selling your house may seem like vastly different processes, but they share at least seven similarities. In both cases, the process can be complex and emotional, requiring careful planning and consideration.
Just like selling a house, selling your service business requires you to determine its value. You wouldn’t try to sell your house without a market comparison.
In both cases, you need to prepare the property for sale. Fix up, paint, stage in both cases. A key element in maximizing the sale price of your business that is within your control is the time and effort you take to improve your business.
When you sell a house, the buyer will do multiple inspections; similarly, when you sell your business, the buyer AND you will investigate each other.
Both sales require marketing efforts to attract potential buyers.
Selling a small business and selling a house both involve complex legal and compliance matters.
Selling a house requires negotiation; same with selling your business. It’s not just the price – features and timing are just as important.
There is a formal closing process for both selling a house and a small business. Financing must be in order, documents signed, and ownership transferred.
One aspect of selling a business and selling a house is NOT similar. When you sell a house, you typically walk away, and the buyer is on his/her/their own.
However, because most small business sales involve an earn-out of some sort, you and the buyer will work together to ensure the on-going success of your former business. You may even continue to work in the small business or have a consulting contract with the new buyer.
In summary, selling your small business is similar – but not identical – to selling your house. Both are emotional and complex transactions, and both require careful planning to execute profitably and effectively.
According to the National Association of Realtors, only 10% of homes are sold with the owner acting alone. The sale of a small business is just as complex, emotional, and challenging (if not more so!); why go it alone? You’ll want to create a team of trusted advisors.
If you want to discuss how a trusted guide can support you in the sale of your small business, reach out to me. This is what I specialize in and would love to talk with you about how you can make the sale of your business as profitable and effective as selling a house.