| In my experience, most people have come to the | | | | business had been discarded in a few moments |
| decision to sell their business because they or the | | | | of madness. Incidentally, it took him almost a year |
| business that they are running has reached a point | | | | to sell and and the price achieved was apparently |
| where it is no longer viable for them to be | | | | 50% of the asking price due to desperation and a |
| involved. Now these reasons can be completely | | | | lack of offers. |
| acceptable and in many cases, unfortunate but as | | | | Now, it is once again a highly successful barbers |
| a seller what is vitally important once your | | | | being ran by a young, enthusiastic hairdresser |
| business goes on the market for sale is the | | | | who has managed to maintain all the previous |
| continuation of service quality, efficiency and | | | | clients and gain new business as well. So who was |
| profitability. | | | | the winner in this situation? Certainly not the |
| I have lost count how many times I have come | | | | business seller! Now onto my next example... |
| across businesses that are on the market for sale | | | | The Fish and Chip ShopOnly a few doors down |
| and at this exact point, the owners literally give | | | | from the barbers on the exact same street, was |
| up. Big mistake! If you are serious about selling | | | | a long established Fish Bar that had a modest |
| your business, you have to ensure that it | | | | amount of custom but wasn't overwhelmed with |
| maintains the exact same levels of commitment, | | | | business. It ticked over quite nicely but it never |
| passion and drive from the vendors as if it were | | | | really fulfilled its true potential. On the plus side, |
| the day they started running the business | | | | the food was pretty good, the prices were |
| themselves. In some cases, this is not easy and in | | | | reasonable but the place was old, yellowing and |
| many not possible. But let me give you a couple | | | | was in desperate need of a makeover. |
| of comparable stories of real life business sales, | | | | The owners had been running it for years. You |
| one in particular that one business owner made | | | | could see they were tired. They worked hard, all |
| that really has no excuse and simply leads to | | | | hours of the day and they were soon due to |
| disappointment and lost potential capital on the | | | | retire. It was the least they deserved. They |
| final sale price. And these are true bonafide | | | | made no real secret of their desire to sell the |
| stories... | | | | business and planned a nice new life in Portugal - |
| The Barbers (Men's Hairdressers)For years, a | | | | all they had to do was sell the business and get |
| chap across the street from my wife's business | | | | the money in the bank. Then they would be on |
| ran a relatively successful mens barber shop. He | | | | the first flight to Lisbon. |
| had a fair amount of regular customers and his | | | | On one of my occasional visits to the Fish Bar I |
| busiest day of the week was always a Saturday. | | | | walked in and noticed that everything had |
| His shop was pretty small. Just about large | | | | changed. The whole place had been redecorated |
| enough to hold two seats so that two barbers | | | | with new exterior signage, fresh paint, new tiling - |
| could work and cut hair at any given time. It | | | | even the fryers looked new. Everything was new |
| wasn't the prettiest of buildings and could have | | | | except one thing - it was still the same owners. I |
| done with some TLC however, his USB was that | | | | was impressed and strangely enough I found |
| his haircuts were cheap - I mean very cheap! | | | | myself going there more often to buy fish and |
| Over the years, the U.K climate took it's toll on | | | | chips and it didn't escape my notice that many |
| the building and it started to look tired. Add to this | | | | more customers starting going there. |
| the market crash of 2008/2009 and you have a | | | | A few months later I decided to go again but this |
| business that suddenly started heading south | | | | time the Fish Bar was closed! The windows were |
| rather sharply. As I occasionally observed the | | | | blacked out and there was a sign in the window |
| business across the street with less and less | | | | stating "Under New Ownership. Sorry we are |
| customers, I started to wonder if the owner was | | | | undoing refurbishment and will be reopening very |
| going to take some action to attract new | | | | soon!". I was so impressed and so pleased for |
| customers and get the business back on it's feet. | | | | them. They has made the sale and weeks later |
| Maybe a revamp of the interior and exterior? | | | | having bumped into the previous owners on the |
| Possibly a new name or rebrand of the shop | | | | street, met a happy and much wealthier couple. |
| signage? No. | | | | They achieved very close to their asking price |
| Nothing happened at all and not too many weeks | | | | and were soon due to fly out to Europe to start |
| later, it dawned on me that something had | | | | the new lives. The entire sales process took only |
| changed. Suddenly the owner would turn up late | | | | a matter of months. Great news. |
| every morning. I mean very late. Sometimes | | | | And the reasons for their success were clear. |
| hours. In fact, some days he wouldn't even open | | | | They had continued to make every effort to not |
| the business at all and would simply leave a hand | | | | only keep the business afloat, but had in actual |
| written note stuck in the window saying "Sorry, | | | | fact invested their own money in the |
| we're closed today". On some days, there | | | | improvement of the business to make it more |
| wouldn't even be a note and many regular | | | | attractive to any potential buyers. Their |
| customers would be seen approaching the | | | | commitment and passion had resulted in a quicker |
| barbers expecting them to be open, only to see a | | | | sale and they got back every penny they put into |
| blackened out shop and no explanation. They | | | | the business to make it more sellable and |
| weren't impressed. It goes without saying that | | | | attractive to buyers on the marketplace. |
| this is a sad situation. | | | | Yet the comparables are staggering. Both |
| I soon learned over the grapevine that the | | | | businesses operated on the exact same street; |
| business was up for sale. As you can imagine this | | | | literally four doors away from each other. In my |
| raised an eyebrow or two seeing that the | | | | view the Barber's was potentially more profitable |
| business hardly ever operated and was in decline. | | | | and could have sold for more money but it didn't. |
| My immediate reaction was that if the owner | | | | The Fish Bar sold far quicker and for more capital. |
| wants to sell the business then surely he needs to | | | | It doesn't take a genius to quickly realise that a |
| ensure it continues to trade and is actually worth | | | | business is not just the bricks and mortar, or the |
| something? Not in this case. However, this | | | | previous years accounts or the product on offer. |
| response is so common. | | | | It's about the people who run and work at the |
| So many business owners wake up one morning | | | | business. It's about the drive and passion |
| and decide that enough is enough. They believe | | | | displayed. And it's about the commitment. Without |
| that there is someone out there stupid enough to | | | | these key ingredients, any seller will no doubt |
| part with a large sum of money to buy a | | | | struggle to achieve a timely or profitable sale. |
| business from someone who no longer cares | | | | So if you're business is about to go onto the |
| anymore. I know in this gentlemen's case that he | | | | market or is already up for sale, ask yourself if |
| was simply being negligent and that he didn't have | | | | you are still giving 100% commitment to the |
| any personal issues preventing him from | | | | business? Are you receiving muted interest or |
| continuing to trade. It was simply down to laziness | | | | offers that you consider derisory? It's a harsh |
| and a lack of care. What a shame. | | | | reality but maybe you need to ask yourself why |
| In the space of a few crazy weeks, a business | | | | and what needs to change. Any business can sell |
| owner had allowed their sole source of income to | | | | but it's entirely up to you as the present owner, |
| decline into a shambles, decrease in value and lose | | | | how easily or quickly that can be achieved. |
| any of its saleability to a new potential suitor. All | | | | Good luck with your sale. |
| those years of hard work invested in the | | | | |