Why does nobody want to buy my business?
80% of businesses listed for sale never sell. If you have been counting on the proceeds from the sale of your business to fund your retirement, the burden of not being able to sell can be devastating.
A good market strategy for any products or service is to see if there is interest, gather feedback, then adjusting based on said feedback. Selling your business is no exception.
Despite thinking we know better, many entrepreneurs wear rose colored glasses when it comes to their business. It can be shocking when interest is low, or worse non-existent, when they decide to sell. They might ask themselves “Why does nobody want to buy my business? Don’t they know how amazing it is?”
If you are experiencing difficulties selling your business, different factors can be involved in this play.
Maybe your marketing and promoting approach is not viable. Maybe you are overvaluing the business, or you have not built enough brand recognition in your targeted market.
Here are 6 reasons why you might be asking yourself “why does nobody want to buy my business?”
Do people want what you are selling?
While most things related to your success are in your control, this isn’t true for everything. Things like emerging new technologies can make some businesses obsolete.
Additionally, outside forces like government regulations, new laws, and downward economic growth can severely impact the demand for a business.
While typically there is time to sell while an industry is losing traction, eventually there will be a point that diminishing demand will lower what you can get for your business.
Are People ready to buy when you are reaching them?
On the opposite side of the spectrum, there may be high demand for your business but the timing to buy is off.
While you might think the demand is low, look at the timing of your offering. Try to work within the schedule of potential buyers and adjust accordingly.
Are you conveying the value of your service or product?
There are many cases in the business market where someone wants to sell the business, but owners struggle with conveying their value. It can be obvious to owners the value their business brings but If buyers don’t see the value of your business, then deals will stay stagnant.
This is why it’s important to work with a valued exit planning partner. You need an expert to help you paint a clear picture and tell the story to make your business value easy to understand.
Are you over inflating your value?
When it comes to business owners, we all believe our business are worth more than they actually are.
Even if we are number 1 in our field, some industries are worth more than others. The most profitable software company in the world is going to come in at a higher valuation than the most profitable local restaurant.
When it comes to selling your business you always want to get the highest return. However, you have to be realistic with your price point based on demand, industry, and projected future growth.
Are you targeting the wrong audience?
Who are you targeting as a potential buyer? Have you considered all options to a liquidity event?
Selling a business is not just about reaching out to enough potential buyers. It’s about finding the right buyers, at the right time. This means leveraging tools like marketing, industry connections, research, and more to get in front of decision makers.
Are you even ready to sell right now?
At the end of the day you might have buyers interested and ready to work with you, but ultimately it might be you who isn’t ready to sell.
Selling a business is more than a transaction. It’s a lifestyle adjustment. You will need to figure out what you will do after selling. Will you retire or start another venture? Whill you fully sell or keep a small stake in the business? Are you ready to sell now or a few years from now?
All of these are great questions that an experienced exit planner can help you to navigate. If you’re looking to learn more, feel free to schedule your free consultation with us. We will walk you through a no-obligation process to show you what an ideal scenario for selling your business and how to plan for life afterwards would look like.
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