01 October 2016
Not all demands are created equally for all types of business.
The type of business in Australia you have will decide how fast you can sell your business, all things being equal. There are more demand for certain types of business than others. For example, if you are looking to sell a cafe, convenience store, take-away eatery or restaurant, then you can expect more buyers than a engineering workshop producing parts for yachts.
Even if you are in an industry with high buyer demand, you should still allow 3 to 12 months to find a buyer and exit your business.
Many business owners badly underestimate the time needed to sell their business. They may have an over-inflated perception of their business and hence wrongly believe that the market will jump at their type of business in Australia.
Other types of businesses have less demand for other reasons. For example, if you are looking to sell a health food store or an alternative health clinic, the demand would be far smaller.
This is because there are just simply less buyers on the market who are interested in a natural health business, even if the business is profitable. A health food store may take 1-3 years to sell relative to 6-12 months for a cafe.
A Vocational Education Training (VET) business may also have less demand, because there are not as many buyers with the expertise, interest or special licence required to operate a training college.
If your type of business in Australia is in a category that attracts less buyer demand, your exit strategy should allow for the possibility of a longer haul.
Also keep an open mind about possibilities on what is required to sell your business (e.g. vendor finance, partnerships, family succession, leasing of the business etc). Let go of preconceptions about your type of business in Australia.
I find it much easier to produce results with vendors that are open minded about the realistic chances of selling their business and to make the necessary changes, than those that are resistant to advice.
As Stephen R. Covey, author of The 7 Habits of Highly Effective People eloquently puts it - successful people begin with the end in mind.
For your next business that you want to exit fast and easily, always buy into a type of business that has a high demand over the test of time.
If you are selling a type of business in Australia that has a fad demand (such as a business selling a new type of yogurt, chocolate or a beverage), then timing is absolutely critical for your exit. Fad demand can disappear as quickly as it appear. (I will write about this another time) *
Read Next -> Criteria 3 To Fast Exit. Competition For Buyers
Last updated December 15, 2018