Why would a seller want to sell a profitable small business or franchise?

Small Business sellers, you will find, choose to sell for any of a variety of reasons. Here are a few:

• Partnership disagreement.
  

• Lack of interest in the business due to boredom, frustration or there is no longer a challenge.
  
• Death.
  
• Need of working capital to grow the business further.
  
• Profitable, but not as profitable as the seller would like.
  
• Retirement.
  
• Illness. This is probably the most common reason given by business sellers. I suggest you delve deeper when this reason for selling is given.

The most unusual reason for selling a small business that I was ever given was that the seller was to be incarcerated!

A small business or franchise is not just a business it is the seller's lifestyle as well. The decision to sell it, therefore, can be highly emotional. Often a seller or franchisee may change his/her mind before the business changes hands.

Prudent small business owners and franchisors carefully plan out their decision to sell. They recognize that timing is important and a business should be sold only after proper preparation has been made. Selling their small business or franchise is not because of frustration or a short-term downturn in business.

The number of small businesses and franchises that actually get sold, however, is a small portion of those that sellers have wanted to sell. Sometimes an individual doesn't follow through because he finds the prospect of selling a small business or franchise is too overwhelming. This is where a business broker can be of great service.

Consider a few of the thoughts that go through the mind of a seller during the decision making process.

BEFORE the transaction the seller asks shall I sell my small business? What is my franchise worth? How can I find a buyer?  What will I do after the sale?

DURING the transaction the seller asks how much shall I tell the prospect about my business? Will he raise his offer? What terms shall
I insist on? Can I trust this buyer?

AFTER the transaction the seller asks should I really have sold? Could I have got more money?. Is the new owner taking care of business?

These are typical thought patterns. They mark the flow of decisions in the transaction. They reflect the doubts and hesitancy involved in the selling process.

In conclusion if your a seller of a small business or franchise you should begin thinking about selling the day you open for business.

About the Author:
Bob Macek is a business consultant specializing in small mid-size businesses. He has been a Professional Business Broker since 1982.
If you have questions regarding the purchase or sale of small, mid-size companies. Contact Bob at: bob@probizusa.com