It is very exciting to get a call from a potential buyer for your business. At times this may happen when your business is not on the market. The first thing your business broker Pine Hillswill tell you is to be careful when dealing with potential buyers. This is because you don’t want to give away valuable information that may end up devaluing your business for example if you share trade secrets.
There are so many aspiring business owners but many of them will never own a business. they either lack the courage, expertise, skills or finances to own a business. Most of these people will only waste your time. With that being said, what can you do to ensure you are only dealing with serious buyers? The key is to learn how to prequalify buyers in the same way a business broker Pine Hills does. You can do this by asking the following questions.
What kind of business are you interested in?
Serious buyers will have done critical thinking about the type of business they want, why they want it and the size of business that will be ideal for them. Size of business can be in terms of profits, turnover, selling price or number of employees. If a buyer is looking for any type of business, that will be a potential red flag.
How soon do you want the business?
If a buyer doesn’t have a timeframe, they will not have urgency. They will only rush you to provide information and keep you waiting. To avoid this issues, business brokers in San Diego require potential buyers to give something in exchange for what is disclosed. For example, you can tell the potential buyer to commit to coming back to you by a certain date if you give them certain information.
How long have you been searching for a business to buy?
You will be amazed by the number of people who want to be an entrepreneur but never commit. These are massive time wasters. They will ask the right questions but in reality they will never commit. If someone has been looking for a business to buy for too long, chances are they are just window shopping.
How deep are your pockets?
Asking the right questions, having the necessary skills and generally being an ideal buyer will not matter if the potential buyer doesn’t have the financial means to buy your business. If a buyer plans on using financing option, a business broker Pine Hills will require that he or she be prequalified. Ask to see how much money the buyer has been prequalified to borrow.
These questions will help with buyer qualification when selling your business. To avoid mistakes, it is always wise to work with an experienced business broker. A good broker will take care of everything for you. Your only job will just be to accept or reject offers from potential buyers.