Niche Exit Planning Strategies

Selling a Dance Studio

A lot can go wrong during the sale of a dance studio these days. We'll tell you how to keep your sale and your future plans on track.

Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.

Success is a factor of preparation, execution and a keen eye for the market. But for business sellers, the process begins with having the right mental attitude.

The Emotions of a Business Sale

Business sellers sometimes struggle to handle the emotions of a sale. Be prepared to experience everything from elation to remorse during the sale of your business. We advise sellers to discuss their feelings with family members and close friends before, during and after the sale. However, when it comes to negotiating a successful deal, there is no room for your personal emotions. To keep the sale on track, you'll need to seek the advice of a broker or another objective third-party counselor.

Business Assets

Buyers typically perform an independent appraisal of your dance studio's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. A pre-listing appraisal also gives you the opportunity to document the condition of your dance studio's assets and possible even make repairs or upgrades to increase the total value of the operation.

Signs You're in Over Your Head

Many dance studio are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary