Selling A Business - Motivation Is The Key

When I first started out, someone told me that the worst kind of seller is the one who isn't desperate to sell his business. Maybe desperate is the wrong word, let's say motivated or interested.

Here's the phrase that should tip you off to a problem, "Sure I'll sell my business for the right price" once you hear that illustrious phrase you know you're in for a bumpy ride.

One of the first listings I ever took was like that and we still haven't been able to sell that business. Why, you might ask?? Let's put it this way, I brought him an offer for 3 times his net, cash, and he acted insulted. He is still living on the planet of unreality! This for a business that was a franchise that went chapter 11 only 2 years ago and he bought the assets and did a turn around. He has only had the business for 1.5 years.

There is only one thing that will correct this situation and that's time. Unfortunately I wish I wasn't the first one to list it, I wish he had put it with other brokers a couple of times, then assumed it was because of their incompetence that it hadn't sold and then I would get him when he's more pliable. But now I'm the incompetent broker who must not be doing a good job, that's why it's not selling.

It couldn't be that no one in their right mind would buy a business for 4.5 times the net that just went bankrupt only two years ago....no that couldn't be it! He is so stubborn I have tried so many times to explain the problem and he just won't budge and there lies the problem...his motivation. That's the one thing you can not control in your clients.

Understanding their situation will save you a lot of time and energy.