Mastering Niche Market Exit Planning
Selling a Nail Care Salon
You've learned a lot during your tenure as a nail care business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a nail care business sale works.
The economy hasn't squashed the market for nail care businesses. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized nail care business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Signs You're in Over Your Head
Many nail care business 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.
The Emotions of a Business Sale
Coping with the emotions of a business sale can be difficult, even under the best of circumstances. Although you might think you're ready to exit your business, selling and separating from a nail care business scan stir up a range of emotions. We advise sellers to discuss their feelings with family members and close friends before, during and after the sale. At the same time, it's helpful to consult with people who can help limit the influence of your emotions on negotiations and other aspects of the sale process.
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