About Entrepreneurs | Home Based Business | Entrepreneur.com | Entrepreuners

Running your own business can be enormously satisfying. But there may come a time when you are ready to sell the business and move on. The challenge is to find an effective way to sell in a reasonable amount of time and on the best possible terms. Many businesses are sold through classified ads in newspapers, business journals or trade publications. Local business associations, such as your chamber of commerce or economic development office, can also help get the word out to qualified buyers. Here are a few other avenues you can explore.

Business brokers. A business broker has a portfolio of potential buyers; people eager to buy a successful business. They may be able to help in locating sources of financing. Business brokers are paid on commission; therefore, a high sale price is to their advantage - a factor that works in your favor as the seller. However, a broker who is looking for a quick sale might be inclined to undervalue your business. Before you sign up with a broker, always ask for references from previous customers and check with the Better Business Bureau.
Competitors. If your business has gained market share at the expense of your competitors, one or more of them might be interested in acquiring your business. To protect your interests and ensure that your business maintains its value, have your lawyer or accountant approach potential buyers. Only when genuine interest on the part of the competitor has been established can your company's name safely be divulged.
Customers. A customer who purchases a product from you and then resells it is another potential buyer. However, if you have multiple customers who compete with each other, you'll want to exercise extreme caution approaching one of them. Again, consider using a third party to sound out interest.
Vendors. Vendors are good prospects for much the same reason as customers. Purchasing your business represents an expansion into a known area with low risk. This is particularly true if you've been a customer of theirs for some time and have an established sales record.
Employees/Partners. Some of the best prospects may be right under your own business roof - partners and employees. If you've been running the business with others, those people are likely candidates to take over. A sale like this also causes less trauma to customers. You may even continue to participate in the business as a consultant.

If you decide to market your business, it's wise to keep your plans confidential. If word gets out that you plan to sell, you could be giving your competitors an unintended boost; your suppliers, employees and customers may become wary. Both situations could adversely affect your ability to continue in business and ultimately affect your selling price.