I've been selling restaurants for 15 years, taking my responsibility to my clients very serious. The easiest way to increase the value of a business is to properly market the business. What does this entail?
Before I answer that question, would you buy a car that was beat-up and dirty or a home that was neglected? Of course not. In fact, you're going to pay more for the car or home that's presented well, marketed well. So why would one think it is any different for a business.
A poorly marketed business devalues the business, and substantially too. What does a well marketed business look like? It looks like a well prepared and analyzed financial analysis of the business where all stones have been looked under and understood. It looks like a broker who has done his/her homework and understands the business' strengths and weaknesses as well as ways to improve the business' performance. It looks like a well written advertisement that lures the buyer into the business with more answers than questions, avoiding typos, fragmented sentences and grammar issues. It looks like a well photographed business as well as video recorded business that presents the business in the best possible light. Then finally, it looks like a broker who follows up on every lead, communicating to the business owner the status of the business and any questions buyers may have.
Each broker is in essence an equity partner in each business sales transaction and he or she should play the role of partner and do the best possible job to present the business in a professional and intelligent manner. Anything less will hurt the price of the business.
Mel Jones is one of the premier restaurant brokers in the nation having published hundreds of articles on buying and selling a restaurant and bar business, selling thousands of restaurants in CA., WA and AZ and building one of the most copied business models in the brokerage industry. Mel started SellingRestaurants in 2004 with the one simple concept, give the buyers the information they need to make intelligent buying decisions without being pestered by a broker or hiding information, prepare the business for market by researching key details that make or break deals and educate the buyer on the buying process to create an intelligent buyer. Prior to SellingRestaurants, Mel was a Chief Financial Officer for Universal Music Group, the largest music company in the world. There he participated in more than $11.5 billion of merger and acquisition transactions. He also work for top companies such as Nestle Foods, USA. He hold a Bachelors in Business Administration Finance as well as attened Law School at Gonzaga University. Give Mel a call at 480.274.7000 or contact him if you have any questions.