Making your choice that is inexpensive and easy to operate standing of sales, marketing, and
So which of these methods for selling would be a 1/1 or 2/1. A business that advertising. Consult a business
a business is right for you? In general, costs millions of dollars and requires broker when selling this type
the answer depends on two factors: experience would be a 9/10 or 10/10.
of business.
your desire to manage the process Next, compare your ratings with the
Businesses that fall between 7/7
and the nature of your business. following parameters:
and 10/10. These businesses typically
If you’re a control freak, go with the Businesses that fall between 1/1 and
fall into the manufacturing or technology
Web site; you can manage the process 3/3. These are commodity-type busi-
categories, or they have multiple locations.
exactly as you please. Alternatively, if nesses, such as car washes, self-service
They can generate millions in sales, are
you want to focus on running your laundries, or mom-and-pop sandwich
expensive, and require industry-specific
business instead of selling it, go get a shops; they can easily be sold through a
experience for effective management.
business broker or investment banker. Web site listing. These are simple-service,
Selling these businesses always requires
As simple as that sounds, there’s a consumer-oriented businesses that run
the ability to explain technical and
qualifier. You have to assess the difficulty themselves. They generally do not have
financial information in precise terms,
of managing the business and its sales receivables and they operate around a
which is why an investment banker is
your best choice.
price objectively. The more difficult retail schedule.
the business is to manage and the Businesses that fall between 4/4 and
Sold!
more expensive it is to buy, the more 7/7. These businesses can carry price tags
The bottom line here is that the more
sophisticated your buyer will be and of $1 million or more and require some
expensive the company and the more
the more you need a professional to business acumen for proper management.
difficult it is to run, the more advanta-
manage the process. Examples include small distribution
geous it will be to use an experienced
Want an easy way to see where your companies, franchises, and technical
sales agent. Just don’t be surprised if he
company fits? Establish two scales from businesses. And unlike service businesses,
or she posts your company for sale on
1 to 10, where you’ll assign a value for the where customers come to you, these a Web site.
sale price and another for ease of manage- businesses need someone who can attract Steven E. Scheinberg can be reached
ment. Now, rate your business. A business customers, someone with a solid under- at
seschein@aol.com
growingwealthmag.com I Growing Wealth I July 08 I 53
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