If you want to sell your business fast you need to be aware of the 90% rule.
"The 90% Rule" states that 90% of people who respond to a business for sale ad or who call a broker about buying a business never buy anything.
The brutal fact is that most people who sincerely want to buy a business can't.
They don't have the money.
Or they don't have the ability to raise the money.
Or they simply don't have the guts to actually pull the trigger on a deal.
Most sellers waste a lot of time and emotion on people who will never buy.
It's natural for you to want to believe the buyer is serious, especially if they are the only prospect you have.
But for the sake of saving time, and your sanity, you need to be ruthless in evaluating the legitimacy of each potential buyer.
So how can you tell up front if someone is part of the 90% or the 10%? Well, there is no way to know exactly but here are a few behavioral traits that distinguish the two.
** They ninety-percenters focus almost exclusively on money while the ten-percenters focus on money AND the dream/idea/challenge of being in business for themselves.
** The ninety-percenters want a "turnkey" business that they can put on cruise control while the ten-percenters want a business they can improve, build and make their own.
Ten-percenters are looking for a good business they can make better and are willing to work hard to accomplish that.
** Ninety-percenters think they should be paid handsomely from day one while the ten-percenters are willing (and prepared) to cut back on their lifestyle and expenses for as long as it takes to pay for the business.
The good news is that even if just 10% of prospects are good prospects, that's still enough prospects for you to sell your business.
The important point here is that you don't want to waste all your time trying to please the 90% who aren't going to buy.
And you don't want to waste your time trying to turn a ninety-percenter into a ten-percenter.
Too many sellers make the mistake of trying to please everybody.
They try their hardest to paint a rosy picture of easy money for little work.
They brag about how their business is a "turnkey" operation.
And all for a bargain basement price.
To the 90% of non-buyers, this is just what they are looking for.
To the 10% that are educated, prepared and qualified, it sounds too good to be true.
The best way to ferret out the real buyers from the 90%, who can't or won't buy, is to treat everyone like they are part of the 10%.
Here's how: 1.
) Describe your business in the best possible light without going overboard.
2.
) If there are opportunities for growth explain them to the buyer in detail so he understands.
Don't settle for generalities about how easy it will be for the new owner to "explode profits".
3.
) If, along with these opportunities are challenges and the need for hard work and sacrifice, say so.
4.
) If you have made mistakes that have hurt growth and earnings admit to those mistakes.
If your prospect responds by showing real interest in the inner workings of your business and the opportunities it presents then you probably have a good buyer.
If their only response is to ask for a price discount along with 100% financing then you know you don't have a buyer.
The bottom line is that even though only about 10% of the prospects out there are good ones that is still enough good prospects - after all, you only need to find one.
But you can't afford to waste time with bad prospects.
So stop trying to please the 90% who aren't going to buy anyway.
It's amazing how quickly these prospects lose interest once you are honest about what it takes to run a business successfully.
The high quality prospects however, know that there is no free lunch and are not going to be impressed when you present a situation that is too good to believe.
So don't even try.