How a Business Tour Can Lead to a Sale
After prospective homebuyers have found some houses that fit their criteria, a next natural step is to tour the home in person. It isn’t often that a person even submits an offer on a home without first walking through it, let alone purchases a home without doing this step.
So, why, then, isn’t a tour of a business talked about more as a vital step in the process of selling a company?
As a business broker, your job is to work hard for your clients to bring them qualified buyers who will pay top dollar for their business. There are a lot of tools at your disposal to do so.
One of the top tools you should use after you’ve found a qualified buyer is setting up a tour of your client’s offices. In these pandemic times, an in-person tour may not be possible or may be too difficult. In those instances, a virtual or pre-recorded tour can be arranged.
Here are some tips for how a business broker can set up and conduct a business tour, and the reasons why it’s so important.
- Create an Agenda
As the broker, you should treat the business tour as an official meeting between the buyer and seller. If you’re able to do it in-person, it may be the first time the two sides have met face-to-face.
Just like any other meeting, it’s important that you create and distribute an agenda to both the buyer and the seller before the tour. Detail the general items the tour will cover, in order of what will happen first, second, third and so on.
Explain what topics will be covered in each step of the tour, and whether there will be time set aside for the buyer to explain an aspect of the business, or for the buyer to ask specific questions.
Assign each step an estimated completion time, and stick to those times as best you can.
By creating an agenda, it’ll set the proper expectations for both the seller and the buyer before the tour even begins. This will also allow both sides to prepare any information, resources and/or questions they may want to bring with them.
You should also allow the seller and buyer to review this agenda before the meeting, and allow them to suggest additions to the agenda. This is key for buyers especially, as it will make them feel like an active participant in the process.
- Have the Seller Sell
The business tour is an opportune time for the seller to put on their salesperson cap. They should focus on the business itself and the potential buyer’s role in making the business even more successful than it is now.
The seller should not focus on themselves. You don’t want the potential buyer to think that the seller is the reason why the business is successful.
Instead, the seller should sell the potential buyer on how they can step into the owner’s shoes and run the business successfully. Your client shouldn’t make the buyer think they can’t replace the seller, because they can. And what’s more, the buyer will need to step into your client’s shoes in order for the business to be a success.
Your client should describe to the buyer how they’ll be able to step into their shoes without disruption to the business. They should also explain to the buyer how the business makes money and not the seller personally. The seller just happens to be the one who’s running the business.
The seller should help the buyer envision themselves in their role as that leader. They should make them feel they’re already in the driver’s seat running that business.
Buyers are often apprehensive about the challenges they will face when running the business. The seller should help the buyer envision what it’s going to be like once they take over. The seller should make the buyer feel confident that they have the ability to do what it takes to run the business successfully.
The buyer needs to feel confident in moving forward with an offer for the company. To do this, the seller needs to let the buyer know that they have confidence in the buyer’s ability.
- Don’t Give Away Too Much Information
When you’re giving this business tour, it’s important to not give away too much information about how the business is run. Show the potential buyer the machinery your client uses to make his products, for example, but explain the step-by-step process on how it’s done.
Remember, this is a tour of the business, not a training session. You don’t want your client teaching the potential buyer how to run a business like yours; you want the potential buyer to become the next owner of your client’s business.
One good idea, though, is to have the seller outline some areas the buyer could potentially improve on. What opportunities might the buyer have to build revenue for the company? What hasn’t the seller done that the buyer could capitalize on?
This is a nice touch that could add significant value to the buyer. It will show them how much the seller cares about their future success.
Talk to a Sunbelt South Florida broker today!
Sunbelt Business Brokers of West Palm Beach provides dedicated business brokerage services for all of your selling needs. Whether you are an established business owner nearing retirement and looking to sell, or an ambitious entrepreneur seeking your next investment opportunity, there is no reason to look beyond Sunbelt Business Brokers. Visit us at 800 Village Square Crossing
Suite 216 Palm Beach Gardens, FL 33410 or contact us at (561) 832-9222.