If you’re contemplating listing your Amazon FBA business for sale with the help of a business broker, it might lead you to wonder whether you are obligated to tell your contractors, suppliers and other people involved in your business that you intend to sell. It could be a good idea to tell any long-time employees or contractors that you plan to sell the business. But this is a very delicate process and one that should be approached with care. There are many risks that you can face if you tell people who are not on a need-to-know basis. First of all, vendors or customers might perceive this as a sign that your business is failing rather than thriving.
Most people might be under the impression that you are choosing to sell because you’re getting out before things get any worse. Furthermore, any competitors who learn about this information could leverage it as an opportunity to steal your customers. Finally, employees who have been working with you personally, such as any full-time contractors, might worry about their job security and begin looking for other work before you’re ready to sell the company and make the transition.
But if you wait too long to tell any key workers in your company, this could make it difficult for you to hide information for the remainder of the sale, which could take up to a year or longer. There’ll be plenty of confidentiality risks you face over that time, such as leaving an email open that you didn’t expect someone to see, accidentally forwarding something or having meetings on your calendar about selling the business.
Keep Sales Details Private with Your Employees
One common recommendation for selling your Amazon FBA company is to keep this private until the deal is done. You’ll lose control of the conversation if your workers find out that you’re selling before you’re ready to do so.
One of the most valuable assets in your business could be your contractors, and in many cases, the owner of the business needs the vendor relationships and employees more than the seller ever did. Certain employees may have to know in advance, however, key employees or contractors should be aware of your plans to sell your business.
Examples can include any senior level managers, business managers you’ve hired or an accountant. This is because lenders and buyers might be asking for updated financial details on a regular basis and want to be able to provide this appropriately.
The best time to tell key contractors is either right before or right after closing on the sale of the business. This is because the risk of a deal falling apart and breaking into pieces after the due diligence process finishes is greatly reduced, and furthermore, this allows you to tell contractors that you’re selling and introduce the buyer shortly after before they develop time to worry.
This can also be your opportunity to explain to the employees what this really means for them as far as whether or not the new buyer of the company has to keep them on as key employees or whether they need to begin looking for another position. When you choose to sell your business with the help of experienced business brokers, you’ll have a good graph of the entire situation.
Whether you are contemplating buying a business or selling your own, you probably want to engage a broker to assist you through this process. Trying to sell a business without the support of an experienced business broker can lead you to feel frustrated and overwhelmed. This is why, increasingly, people with established businesses are turning to dedicated business brokers who have a good lay of the landscape and are knowledgeable about the different types of prospective buyers on the market.
Finding the Right Broker for You
Not all business brokers are one and the same, however, which means that it pays to do your research and to be knowledgeable about the process itself. Scheduling an initial phone call with a business broker can give you a good idea of the overview process and what you might expect as you decide to work together. Bear in mind that business brokers are slightly different from real estate brokers. Business brokers tend to be paid by the seller.
What Does a Broker Do?
An experienced broker can play a key role in helping you to narrow down the types of businesses that meet your criteria. As a seller, however, a business broker also plays the key role of assisting you with the streamlining of selling your company.
Given that selling your business is probably a very personal decision and one of the biggest ones you’ll ever make, it’s important to understand that you need to do your research of working with a broker.
Financials should not be the only qualifier for selecting a broker. Make sure that you identify someone who has a strong track record and plenty of testimonials. Make sure upfront that you are clear about what fees, if any, will be involved. A seller is usually responsible for paying the broker’s fees, but you will need to understand how this works and whether this comes out of the end sale.
The broker might not have every answer available about the state of your business unless you have completed business valuation already and have given them a clear overview of what details they can provide to prospective buyers.
After interviewing brokers, you need to learn their qualifications by asking whether they work full time or part time, how long they have worked as a business broker, whether or not they maintain a real estate license, which is not always necessary, and whether or not they are certified.
A good web presence is another way to evaluate how serious a broker is about operating their business. Their website presence should also include reviews and testimonials from past clients, which can give you a great perspective on how involved they are in the industry and the overall feeling that past clients have had in working directly with these brokers.
No matter how you choose to move forward, the support of a business broker can erase many of the greatest challenges you face in attempting to sell your business and finding a highly qualified and vetted buyer who is ready to step in and continue the growth you have already worked so hard to build.
Are you interested in selling your e-commerce company, but you are not familiar with the process that you need to consider? Selling any e-commerce company doesn’t have to be difficult when you retain the services of a business broker. But the first decision that you’ll consider in this process is whether or not to sell your e-commerce company via a marketplace or a website.
There is no doubt that there are many different benefits to selling products online, which is probably what drew you into the process of doing it yourself. Reaching more customers than a traditional brick and mortar store and being able to sell at all hours the day greatly expands your potential to make profit. There are so many different e-commerce options, and as a result of that, people are looking to cash in and tap into the power of selling on an e-commerce website. Some merchants must consider this initial decision of selling on their own websites, such as an independent e-commerce website or selling through another company like Walmart, eBay, Etsy or Amazon. Determining what is most appropriate for your business involves thinking about the benefits and downsides of each.
There are many different advantages to selling on a third-party marketplace and this is a top reason why plenty of sellers use this option. First of all, it is simple to get started and maintain a business when launching on a third-party marketplace.
An online marketplace can simplify the process, particularly for new sellers. This is because the infrastructure is already established, and this saves the hassle and time associated with building your own website from scratch. Since no one individual seller owns an online marketplace, the payment and transaction details are handled by the marketplace.
This removes a lot of things from your to-do list and can make the process easier overall. Since many of these marketplaces already have established forms of traffic and plenty of people visiting their website, there are millions of shoppers already leveraging them to find the best deal. You can make an impact by tapping into the power of the traffic already established on the marketplace.
There are downsides, however, to selling on a marketplace. Since there are multiple competing brands on the same site, you must always be aware of how to stand out from everyone else who is trying to accomplish the same goal of stealing their market share. Your competitors might target shoppers who visit your individual listing and then place advertisements for their own products on your pages.
Whether or not this impedes your ability to do business, depends specifically on the competition intensity in any product category, which means that you might not get the easy sales or exposure that you are intending. Furthermore, people who purchase your products might never realize that you, as the third-party seller, truly exists. Most people who shop from these marketplaces, such as Amazon FBA, assume they are buying from that marketplace, even when it is relatively clear that they are purchasing from a third-party seller.
Because of these disadvantages, it is important to realize that you might want to do some additional steps to build a niche site and create your own brand awareness.
If you’re interested in selling your website and the associated company, there are two different options available to you. The first is to hire a website broker to sell your site. The second is to do all of the legwork yourself.
What Does a Broker Do?
There are a lot of tasks that must be accomplished if you choose not to hire a website broker to sell your site. These include getting a valuation, finding someone who is interested in purchasing a business in your niche, negotiating a price and closing out the deal. Because of the significant amount of work required and the high level of possibility that you could make an error, it is much easier to start searching for how to hire a website broker to sell your site.
In the process of choosing how to hire a website broker to sell your website, it’s important to realize that what you are essentially looking for is a business broker. A website broker evaluates all aspects of your website in order to help you effectively list and sell your company.
This means that a website broker evaluates your traffic, determines how much of it is organic versus paid, your official positioning in search engine rankings, how resilient you are to current changes in the market, the level of competition that currently exists in your niche, and the various revenue streams you have available to you through your website.
Brokers and Business Valuations
Of course, when selecting how to hire a broker to sell your website, another aspect of this professional will help you with is determining the amount of revenue that you’re making and how all of these other factors are built into what your website is truly worth on the open market.
A website broker who is knowledgeable about selling websites will look for possible issues that could hold back the value of your site. This means that you get an expert’s insight into small and big steps that you can take to increase the overall value of your website on the open market.
Many of these are short term elements and changes that can significantly boost the value of your company. All of this information gathered by your website broker is then compiled into a memorandum that the business broker uses. The business broker will use this information to craft your listing and to speak to prospective buyers.
Another major reason to choose to work directly with a business broker such as those working at Website Closers is because of the broad network they already have of prospective and serious buyers. It is not enough to simply list your company for sale online and hope that prospective buyers will come.
Rather, you need to have a leveraged network of people who are highly qualified to own and prepare to step into these business ownership roles. Your business broker vets these potential buyers and identifies those who are interested. The business broker plays a crucial role at this point in the process because they will interview these individuals and eliminate those who are not suitable.
The broker then continues to assist you with all aspects of closing out the sale, such as negotiation and guidance on whether or not you should take a deal.
You may also work with attorneys and other professionals, but your broker will also play an important role in looking at the contracts for both parties to sign and ensure that all possible issues have been handled in advance.
Deciding to involve someone else in the process of selling your online business, can be difficult to contemplate if you have never interacted with an online business broker before. Thankfully, there are many different steps that you can follow and questions that you can ask to learn more about the broker’s background and ability to help you effectively.
How Does a Broker Work Behind the Scenes?
The support of a business broker will assist you with all aspects of the sale from the moment that you decide to share this situation and support with the help of a broker. Asking questions upfront will allow you to achieve clarification in whether or not this person is the right one to help you.
Schedule an Interview to Ensure This is the Right Online Business Broker For You
The key questions that you need to ask your online business broker before deciding to work together include:
Is It Dangerous to Sell a Company Without a Broker?
Selling a business on your own to save money is a false economy that also comes with a false sense of confidence. But hiring the wrong online business broker to help you with this sale could be even worse.
That’s why it’s important to retain the services of an online business broker who is highly knowledgeable about the best way to support you from end to end. Ideally, this online business broker will have ample testimonials and experience in your specific industry to assist you with establishing a fair selling price, and being able to recover maximum compensation upon the sale of your business.
Your initial screening with an online business broker will also give you a sense of his or her communication style and overall personality, both of which should never be underestimated in the process of hiring the right person to assist you with a business sale.
At Website Closers, we’ve earned our reputation because of the way we treat clients. We know how personal it is to sell a company you’ve been so involved with, which is why we give you individual attention and prompt responses to your questions. We aim to find the right buyer for your needs so that you can focus on other aspects of selling the company without having to worry about finding the right people to take over. We know the buying process well and put your needs front and center.
Thinking about selling an Amazon business? Then there is no doubt that you want to take every step possible to present your company in a favorable light before moving forward and listing it for sale.
Getting Sales Help from an Online Business Broker
An online business broker can help you with all aspects of your Amazon business sale; including the completion of your Amazon business valuation and consider all the various factors that should be put forward when selling your company. Becoming a profitable Amazon seller is an exciting prospect, but it’s also one that may lead people to pursue other entrepreneurial or life-related dreams and goals after the business has become profitable.
Moving on to another stage of your life means getting as much value as possible out of an Amazon business for sale. Becoming a profitable Amazon seller puts you in the best possible situation to sell your company for a great value and move on with your life.
Since many different sales on Amazon come from third-party sellers, many buyers do trust and buy from third parties, meaning that it is a great time to cash in and sell your Amazon business. There are extreme advantages to being an Amazon seller and when you have already built up the foundation and are thinking about selling your Amazon business, you can easily portray these to prospective buyers by maximizing your profit.
How to Make Your Store Appeal to Potential Buyers
First of all, these buyers don’t have worry about setting up an online shopping website and they can leverage the traffic that already comes to Amazon which is around a 150 million people per month. In order to become a profitable Amazon business, you’ll probably have already built up many of the structures inside the company that will make be seen with extreme value on the market.
These include selecting the right niche, becoming a proactive marketer and being competitive and knowing the competition. If you start with just one product on Amazon, you can enhance your profits significantly by selling a whole range of items.
You’ll have to take a close look at the market to figure out what is selling well at first and make sure that you capitalize on the holiday season. Christmas time is when many people, who are third-party sellers on Amazon, make a great deal of money.
If you are thinking about listing your Amazon business for sale next year, for example, you might contact an online business broker now and begin putting in place the marketing strategy to enhance your sales during the holiday rush.
This will show your business as profitable as possible and makes it a much more likely buy for people who are contemplating purchasing an Amazon business. Selling an Amazon business does not have to be hard when you identify an online business broker who can assist you with a free business valuation and an explanation of all the factors that will go into your online business listing, you are in a much better position to approach your sale.
Not all business brokers are one and the same. Each will come to the table with different experience, commitment, and end goals for you. Furthermore, their personality as a business broker can have an impact on the success of your sale, so you should never ignore the potential repercussions of choosing a broker with a personality that doesn’t work well with you.
Doing your home to pick the right broker is strongly recommended to get maximum benefit out of your online business sale.
Selling a small business that you have worked so hard to build is the result of many years of persistence and dedication. Finding a buyer for your business sale is even more important. The option to get access to a structured selling process in a bigger pool of buyers is one of the leading reasons why you should consider working with online business brokers.
What to Look For in a Business Broker
Consider a business broker as similar to a real estate agent since they provide a match making service and have extensive knowledge about the industry and the marketplace. This, working directly with an online business broker, can help you sell your business for the highest possible sale price to the right buyer. The first thing to do when identifying a business broker to work with you is to get referrals. Ask a lawyer, peers, industry associations and accountants for references of good business brokers. They may be able to point you in the right direction. The International Business Brokers Association, a non-profit, has more than 1,000 business intermediaries around the world.
You may find someone through this network. It is extremely important to practice due diligence when identifying the right online business broker. Just as a prospective buyer of your company will want to do all of the appropriate research to verify that the value is there, you will also want to check whether or not the broker has the appropriate credentials, background, and experience to assist you. Do a little digging to find out whether there are any complaints or lawsuits lodged against them and look at their testimonials or examples of previous business sales to figure out whether they have a background of closing the deal.
A dedicated practitioner should always be someone you seek out as an online business broker when selling a website. A person who spends all of their time selling businesses will add a tremendous amount of value to the overall sales transaction and the ability to provide you with insight rather than a part-time agent.
A network of contacts levied by a business broker can help you with the process of selling your online business all the way from company valuation all the way through final sale. Make sure that you are clear about the fee that the broker charges and know that the fee is always paid at the conclusion of the sale of the price. Any broker that is asking you for a significant upfront fee or to begin an application process or simply to assess the business value is a red flag. Make sure that you understand exactly what the business broker will do in terms of identifying an appropriate buyer and helping you have everything in place before you put the company up for sale. The right business broker can add ease and clarity to the transaction.