Niche Market Exit Planning Tips
Selling a Barter Services Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet barter services continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Dire economic forecasts have forced many barter service sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
You'll always have an excuse for not putting your business on the market. With hard work and dedication, your barter service can be sold at or above fair market value right now.
Finding Prospects
Whether you know it or not, prospective buyers for your barter service are all around you. In fact, there is a good chance you already know several individuals or companies that might be interested in buying your business for a decent price. Although some barter service sellers advertise their businesses in general classifieds, the most successful sales are those in which professional brokers seek out likely buyers. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Although you will pay a fee for brokerage, it's generally worth it because the end result will be a higher sales prices and more favorable terms.
Selling to a Family Member
There is no easy way to sell a barter service, not even to a family member. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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