Women entrepreneurs seeking to sell their start-ups, explore new markets, or acquire new businesses might experience various challenges. For example, they may need to become more familiar with the business selling process, where to find buyers, and how to seal the deal.
A business broker can be a valuable resource for women entrepreneurs because they can provide relevant information, find the right buyers, and facilitate the transaction. This article highlights compelling reasons women entrepreneurs should consider involving business brokers.
Access to a Large Pool of Potential Business Buyers
Women entrepreneurs with small businesses may not have the time and resources to network and know potential business buyers. Therefore, they need an expert business broker who deals with business buyers daily and can recommend the business to buyers on their contact list or through word of mouth.
With a rich network of buyers, a broker can sell a business quickly and get a better offer than the business owner.
Accurate Value of a Business
Small business owners may understand the best way to run a business but may not determine its value accurately. Therefore, if a woman entrepreneur decides to sell their small business, she might sell it for less than its worth.
However, a broker pays attention to key factors such as revenue, inventory, profits, industry, trends, growth potential, business location, and more to determine the accurate value. Unfortunately, an entrepreneur may ignore these factors or consider some to determine the price. Therefore, she might sell the business for less amount than its market value.
Access to Information Relating to Business Sales or Expansion
Some female entrepreneurs own small businesses and face challenges when they try to grow due to a lack of relevant information. For example, business expansion requires compliance with new rules, regulations, and procedures.
Entrepreneurs who rarely have time to attend seminars and workshops or pursue higher education may need help understanding the regulations, leading to compliance issues. Business brokers can provide the information needed to grow a business and attract relevant target buyers.
Women-led firms generally face more challenges than those led by their male counterparts. Since women entrepreneurs have limited time to build networks and attend meetings due to outdated but still prevalent gender roles, they may rely on personal networks, unlike male entrepreneurs who usually have more time to network and learn. Fortunately, brokers can provide the information needed to sell or acquire a business.
Better Negotiation Skills
Selling a business involves finding a potential buyer and negotiating the sale. A woman entrepreneur selling her first business may lack the negotiation skills to get a good deal.
On the other hand, a business broker has gathered relevant negotiation skills over the years. Therefore, they can highlight the strengths of a business and respond to issues highlighted by potential buyers during negotiation to ensure the entrepreneur gets as much money as possible from the business.
Paperwork and Closing
Women entrepreneurs know how to run their businesses efficiently but are not experts in acquiring or selling businesses. However, a broker knows every aspect of selling or buying a business and can facilitate a smooth process.
The process requires paperwork, from listing the company for sale to a sale agreement and financing agreements. Since a broker can handle the paperwork and protect the interest of both parties, involving them can save time and eliminate hassles.
These are compelling reasons women entrepreneurs should engage business brokers when necessary. Brokers can help find a potential buyer, provide relevant information, negotiate the deal, handle paperwork, and facilitate the transaction. This can help entrepreneurs get a better deal and save time and effort.