The Smaller the Business the Bigger the Sale

Small business are selling out, the smaller the business the bigger the sale.  Small business do not have to be small in terms of the size of money, but they can be in terms of the size of brand, size of niche or market.  Large companies sometimes buy small businesses to leverage themselves or just to buy up all the competition.

Selling a small business is never easy, but if you had the smaller of the smallest business it is still hope that you will be able to sell your business above your asking price.  Being a small business doesn't mean you have to make small money, you can be small in size (1-3 employees) but make an average of $1M+ and still be considered a small business.   

Ask yourself, what makes someone want to buy your small business?  The first answer should be revenue potential, then followed by level of interest, business potential, business brokering, and business niche.  Most buyers buy a business due to some personal connection or leveraging aspect.  If a business seeker is looking to buy your business then it most likely lends itself to their personal emotions or can be an asset to their existing business.  Buyers are more inept to buy from someone whom they trust or feel are trustworthy.  It is your job as the business seller to establish yourself as trusting and honest.

Reaching small business owners in tight niche markets is sometimes difficult for large corporations, because small groups are usually local and not widespread.  I know you might say, large corporations don't care about the small business guy --- well this is an untrue statement, big businesses are always looking for leverage and small businesses can provide such leverage.

If your business is small in size and caters to a particular niche market, whereas you are a leader in that niche and reach the masses in that particular market, then large companies are more than likely seeking your business or a stake in your business.  This is because your small business can provide a plethora of wealth to a large organization who can promote their products or services to your customers.  There are other assets a small business can bring to the table, these being ---

• Market Share.  Small business have a wealth of local market share which cannot be denied.  Small business take up at least 80% of the business space.
• Trust & Integrity.  Local stores or restaurants can be a very honest landmark in the community which stretches beyond any national household name brand. 
  
• Competition Shrinkage.  What better way to get rid of your competitors than to buy them all up.  Large companies seek out up and comers who threaten their own business brand to stomp out competitive fire starters.  In most cases it's a sellers market and you get top dollar for the sale of your business. 
• Knowledge Transfer.  Who knows how to do it better than the team who created the business?  Just because it's a large business doesn't always mean they have the best way of doing business, sometimes a small business has a very productive method, but it just needs management and dollars to expand on that methodology and idea.  Keeping the team who started the small business is a wise business choice for most business acquisitions, this way they'll retain knowledge, its like keeping the chef around who has the recipe to the restaurants secret sauce.  

When you buy a business or start a business you should always take a look at your business from a buyer's perspective.  If you do this then you would likely grow your small business tremendously, because you are aiming to make your business attractive to buyers which ultimately makes your business the best in its market.  Remember no matter how small your business is in size or money, if you are the leader in a small niche then you can do big things!

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