As an entrepreneur, you want to make maximum profit when selling your business. This is not an easy goal to attain. While you might feel like you are the best person to sell your business, you are not. Selling a business is very different from running it. That is why the first thing you need to do is hire a competent business broker 92108 to help with the sale. However, not every broker has your best interests at heart. That is why you should pay attention to the following red flags.
A broker wants a significant deposit or total fee to be paid upfront
While it is not uncommon for a business broker in San Diego to take an upfront fee and a commission to be paid upon the sale of your business, you must avoid brokers who ask for a significant or total upfront fee. In most cases, such a broker will only be interested in making money at your expense. The right business broker 92108 will only get paid after selling your business. If they ask for an upfront fee, they do so to ensure you are serious about selling. They will also not ask for a huge upfront fee.
The broker doesn’t have a website
In this day and age, you should be wary of hiring any business broker that doesn’t have a website. If a broker doesn’t have a website, chances are he is behind the times. He will most likely end up using ineffective marketing strategies. The internet is a very powerful marketing tool for a business broker. Make sure their website is well-written.
The broker refuses to show you printed marketing materials
When selling a business, business brokers prepare some kind of an offering summary for every business they represent. The broker should be ready to share the materials he prepared in the past for another client. This material will help you know how the broker will handle your business.
The broker promises to sell your business in weeks
A lot goes into the sale of a business. Before it can be listed, the business has to be readied for sale. This involves performing a business valuation and addressing issues that may impact the selling price. The broker will then prepare marketing materials and get the business listed. It is also the duty of the broker to prescreen potential buyers, help with negotiations and ensure all the paperwork is in order. All this takes time. That is why it is not possible to sell a business within a week. If the broker claims they can sell your business within a few weeks, the only way that is possible is if they already have a ready buyer. It typically takes 6 months to sell a business.