Do you know what buyers really want to know? I’ve got a secret for you: it’s not about your product. It’s about them. The good news is that they care deeply, passionately, and often personally about the things they buy. That means when they find something that appeals to their values and meets their needs, they’re loyal customers for life. So how do you tap into what buyers are looking for? By understanding their motivations and giving them what they want, you can create a successful business that meets their needs and exceeds their expectations.
- Want to do their own thing; to control their own destiny, so to speak.
- Do not want to work for anyone else.
- Want to make better use of their skills and abilities.
- Want to make money.
According to recent surveys, the biggest reason people want to be in business for themselves is to be their own boss. The first three reasons listed revolve around this theme. Some may feel frustration in their current job or position. Others may not like their current boss or employer, while still others feel that their abilities are not enough.
It’s important to understand their motivations and concerns. Money is certainly a major factor, but it’s not the only one. You need to explore all of your options. Buying an existing business is a popular choice because it reduces the risks involved. Knowing what buyers are looking for will help you make a more informed decision. Money is important, but it’s not the only thing that matters. Understanding the buyer’s perspective can help you make your business more successful.
The most important questions are listed below; although not all buyers will want answers to all of them, it’s important for the seller to be prepared to answer each one.
- How much is the down payment? Most buyers are limited in the amount of cash they have for a down payment on a business. After all, if cash were not an issue, they probably wouldn’t be looking to purchase a business in the first place.
- Will the seller finance the sale of the business? It can be difficult to finance the sale of a business; therefore, if the seller isn’t willing, he or she must find a buyer who is prepared to pay all cash. This is very difficult to do.
- Why is the seller selling? This is a very important question. Buyers want assurance that the reason is legitimate and not because of the business itself.
- Will the owner stay and train or work with a new owner? Many people buy a franchise because of the assistance offered. A seller who is willing, at no cost, to stay and to help with the transition is a big plus.
- How much income can a new owner expect? This may not be the main criterion, but it is obviously an important issue. A new owner has to be able to pay the bills – both business-wise and personally. And just as important as the income is the seller’s ability to substantiate it with financial statements or tax returns.
- What makes the business different, unique or special? Most buyers want to take pride in the business they purchase.
- How can the business grow? New owners are full of enthusiasm and want to increase the business. Some buyers are willing to buy a business that is currently only marginal if they feel there is a real opportunity for growth.
- What doesn’t the buyer know? Buyers, and sellers too, don’t like surprises. They want to know the good – and the bad – out front. Buyers understand, or should understand, that there is no such thing as a perfect business.
Years ago, it could be said that prospective buyers of businesses had only four questions:
- Where is the business?
- How much is it?
- How much can I make?
- Why is it for sale?
Today’s business owners want to know what buyers really want to know before investing in their own businesses. In addition to the four basic questions, buyers are interested in a wider range of topics including the seller’s background, the industry, and the competitive landscape.
Despite all of the questions and answers, what most buyers really want is an opportunity to achieve the Great American Dream – owning their own businesses! So if you’re looking to sell, be sure to address all of the questions buyers are asking, and make sure your business offers the chance for success and prosperity.