by Heather T. | Apr 28, 2025 | Business, Marketing, Observations, Operations, Social Media
A common complaint I get from clients, both personal, and business mentoring clients, is that they rarely have enough time to take lots of photos for marketing use. Here is an easy solution if you are running into that problem.
You can break most photos into at least three or four separate photos, and often many more, depending on the number of elements and objects. With the excellent photo capability of many of today’s cell phone cameras, clear auto-focused high resolution photos are very easy to get.
This is a simple thing you can do using your cell phone (or other source) photos and Canva.com. If you don’t have a Canva account yet, just start with the free version and many times for both personal and business use, that may be all you end up needing.
Step One is to create a base size for your image. It could be inches or pixels. It can be square, rectangular, vertical or horizontal. Use the image size and image format to best suit whatever project, whether it be digital marketing or print that you might need it for.
Step Two is to upload your photo (or other image, could be a graphic) to Canva.
Step Three is to insert your photo into your created image size.
Step Four is resize, zoom in, zoom out, move around the screen or flip.
Step Five is to see how many additional images you can create with one photo or graphic.
Here are a couple of examples of using one image and creating multiple images from one. I’m a big believer in keeping it easy peasy and this helps save time and extend any images you might have for marketing while keeping costs down. And these are AI generated purely to use for examples.
by Heather T. | Mar 11, 2025 | Business, Business Location, Observations, Operations
In Chapter 13 of my location assessment book I talk about foot traffic. I’d like to dive in a little bit more on foot traffic and using hair salons is a perfect example of this. If you are in a more rural area, your traffic is primarily going to be dependent on people making appointments and driving anywhere from a short distance to a long distance away rather than foot traffic. In this case how (website, social media, print ads, online ads, networking, etc.) and where you advertise (where is the competition advertising?) as well as making sure your pricing is in line with area competitors is going to be key.
If you are in a more urban area and even more densely populated one like New York City you’re going to have different types of foot traffic. I am going to include some types of public transportation as foot traffic because unless you have a subway or bus stop right in front of your salon, there is still typically some walking. There are walkers that are passersby, typically a very small percentage that are going to be impulse walk-ins, although a barber shop may have a higher percentage, and clients who walk from their homes or businesses.
For example, you might have someone that lives within two to five blocks of your salon walk to it, or they might take a bus, subway or elevated train depending on where you are. Your clients with a more disposable income might be coming from a similar distance away but they may prefer to take a cab or have a driver drive them.
Your clientele might be primarily men, or primarily women or could be a mix, or families. Are they clients that are looking for a quick serve in and out for a 20 minute wash, cut and blow dry, or is it a two hour experience? Is your clientele single professional people with more money to spend on an appointment? Are you close to residential neighborhoods and if you are, what types of neighborhoods are they? Are you more in the heart of a financial, business or shopping district? And again, who are the types of people that might come and either work in the area or shop in the area? How much time do they have on their hands and importantly when? Lunchtime? Prior to work? After work? It might be a combination of some or all of those, but it’s important to think about how they will come to you if you’re in a city or more urban area that may not have a lot of parking or limited parking.
Doing this assessment preopening a location can help dictate what hours you are going to be open and what you offer. If you are catering specifically to families with kids, with kids in addition to parents being clientele, evenings and weekends will typically be busier except during school breaks and the summer months, so plan accordingly.
What services do you think they’re willing to pay for, as well as what are the competitors offering, plus what are the competitors charging? And I say “think” for a reason. Do your research first, ask questions of residents and do the competition stalking because if you just assume that moving into a salon that offers services to a demographic that doesn’t want, can’t pay for, or does not have time to take advantage of, turns the word assume into any of your choice of applicable acronyms.
- Avoiding Serious Study Undermines Market Entry
- A Strategy Sorely Underestimated Means Exit
- Analysis Shortcuts Sink Unprepared Market Entrants
- A Stupid Strategy Usually Means Exit
- A Startup Stumbles Unless Market Examined
- Avoiding Smart Steps Undermines Money & Effort
- A Strategy Sans Understanding Means Exiting
- Avoiding Study Secures Unnecessary Mistakes & Errors
Three additional things to think about when opening a salon, whether you are building from scratch, revamping an existing space (occupied formerly by another type of business) or taking over an open (or recently closed but existing salon).
Just because an existing salon has been operating in the space doesn’t mean you don’t still need to evaluate these things. If a space offers four salon chairs and you plan to add two additional chairs into the space, you will need to find out whether you will have the plumbing capacity to handle additional high-water usage and have proper drainage. A new or renovated space needs to have sufficient plumbing to handle multiple shampoo stations. Most standard retail spaces often lack the proper pipe capacity, hot water heating capability and may have potential drainage issues.
Another consideration is ensuring the space has proper ventilation for the strong chemicals and styling sprays used commonly by salons. Having sufficient HVAC capacity is critical to prevent fumes from building up.
The third consideration is that the electrical system must be able to support multiple high-wattage appliances running simultaneously. I spoke with a business owner last year who renovated an existing space that was formerly a retail store (not a existing salon), and had to spend over 25K to upgrade the current electrical system between upgrading the existing electrical panel, new wiring and dedicated circuits and labor costs. So it’s worth evaluating (and getting several cost estimates) if you are renovating or expanding a place you are renting or planning on purchasing beforehand.
Action items:
Who is the competition?
What is their pricing?
What do they offer?
Where and how do they advertise? (Offline and Online)
Can the area of region support another salon/hair stylist? Or is there already market saturation?
Who (specifically is your target market(s)?
What services are they looking for? (don’t assume: ask, research, poll, do surveys)
Does the location have adequate water and drainage?
Is there adequate HVAC needs for the space?
Is there adequate electrical capability for the space?
For additional touchpoints and topics on evaluating a space for your salon, please check out Finding a Location for Your Brick and Mortar Business
by Heather T. | Mar 6, 2025 | Blog, Business, Observations, Operations
Times are tough right now for many businesses. When they say, “May you live in interesting times”. It’s unfortunately not a blessing of future wellbeing. I know many businesses, no matter who you voted for, are feeling the pinch of not being able to find staff, costs rising on things outside of anyone’s control, like a bad coffee bean harvest, for example, and other challenges.
As a small business owner myself, I try to give back to the community as much as I can, but it seems like sometimes it’s just not enough, and I’ve talked to many other business owners who have felt and feel similar.
None of these suggestions are anything new or earth shaking, but I thought it might be helpful to condense some ways a business owner might further contribute to their local communities if you feel like there are things going on that you have no control over and feeling “stuck” or unmotivated. And maybe you need to do “more”.
Taking part or getting involved more on a local level is something as small businesses IMO we should do anyway, but sometimes we don’t have the time, the motivation, or the incentive. These cost little to no money and can bring back to a business marketing and branding exposure, plus the knowledge that you are contributing to your local community, and sometimes that comes back to you in spades in terms of knowing you helped others. As a small business mentor, it’s one of the most rewarding things I have ever done in my life and it helps keep me going.
- Use social media, emails, or posters to share local help like food banks or mental health services.
- Give advice related to your field, like job tips or budgeting help (or other expertise).
- Be a volunteer small business mentor. SCORE.org, MicroMentor, CWE
- Volunteer in the community. Habitat for Humanity, Red Cross etc.
- Promote other small businesses and non-profits in your area.
- Let local artists or service providers use your space.
- Host free classes or networking events.
- Offer a quiet space with Wi-Fi for students or remote workers.
- Set up a donation box for food, clothes, or supplies.
- Set aside a portion of new income to donate to food pantries or for people with food insecurities or other needs.
- Organize volunteer events for employees and customers.
- Offer “pay-what-you-can” pricing for key items or services.
- Allow flexible payment plans for struggling customers.
- Recognize local heroes like teachers and healthcare workers.
- Plan small community events, in person and online.
- Give free resume reviews or career coaching.
- Connect job seekers with opportunities through your network.
- Provide free consultations in your area of expertise.
- Teach free or low cost classes on business, budgeting, or job skills (or other expertise).
- Let nonprofits or local groups use your space for free.
- Set up a bulletin board for local resources.
- Allow customers to prepay for items or services for those in need.
- Offer small rewards for donating to local causes.
- Use social media to highlight fundraisers and community needs.
- Share inspiring local stories to boost morale.
- Offer internships or job training for students.
- Sponsor school programs or small scholarships.
- Give workers paid time to volunteer.
- Match donations employees make to charities.
- Donate leftover goods instead of throwing them away.
- Reward customers who recycle or support sustainability.
- Offer stress-relief activities like mindfulness or support groups.
- Share resources for mental health support.
- Partner with local nonprofits.
- Create a neighborhood help board or digital forum.
- Start a community garden in unused spaces.
- Host/teach free cooking classes for those with food insecurities or ones that need help with nutrition and meal planning.
- Start a POD (Print on Demand Business) and donate a good portion of profits to local non-profits, food banks/charities etc. POD businesses are free or low cost to start up.
- Volunteer to be on a local non-profit board of directors.
by Heather T. | Feb 17, 2025 | Business, Observations, Operations, Selling a Business
Additional information on each question from 50 Questions to Ask a Business Broker When Selling a Business
Q26. How do you manage negotiations with buyers?
Why should you ask this?
A broker’s negotiation skills are important to boosting your business’s worth. Sales success and timing depend heavily on their talent for productive discussions. Finding out how they deal with offers and counter-offers, and whether they’re usually the ones to make the first move, or prefer to respond to others, can help give some insight on how they address negotiations.
It’s important to have a broker who can effectively negotiate on your behalf, to get the best price and terms for your business sale. Finding out how they approach negotiations and manage buyer expectations for the business helps to make sure that your interests are being served in the best way possible.
Sales negotiation isn’t just about price, it also involves payment structures (cash vs seller financing), non-compete agreements, or other clauses. Asking for examples of how they’ve handled past negotiations and resolved any conflicts can give you a better sense of their approach and effectiveness. Look for a broker who can advocate for your best interests while ensuring the deal progresses. They should understand the buyer’s interests as well and structure the deal to serve both parties as much as possible.
Q27. What are your commission rates and fee structure?
Why should you ask this?
To determine your expenses, you must know the broker’s commission rate and fee structure. A commission-only system is used by many brokers. Broker commissions are typically 5–10% of the final sale price, however, this percentage is subject to change. I have also seen commission rates range up to 12% and sometimes more, depending on elements such as the size and complexity of the transaction. While more complex sales may involve higher rates, typically rates usually do cap around 10-12% for very small businesses. It’s important to clarify the fee structure right upfront, so you don’t get caught by surprise later on.
Some brokers use a tiered commission structure, where the percentage decreases as the sale price increases. Knowing these details right off the bat helps you understand the total cost of the broker’s services and ensures the rates align with your expectations. Some brokers ask for money upfront, since they’re not certain they can sell your business, but others only charge if they sell it, as they’re very selective about which businesses they work with. Brokers who charge primarily success fees may have an incentive structure better aligned with the seller’s interests.
Q28. Are there any upfront fees?
Why should you ask this?
Upfront service fees may apply with some brokers. You should clarify if the fees are included in the final commission to plan your budget effectively. Ask if the broker expects a retainer or upfront payment to work with you. Other upfront fees may pay for services such as formal business valuations or marketing materials like confidential information memorandums and teaser documents.
Make sure to ask the broker if they require any initial payments or retainers, and whether those are refundable. Understanding these fees in advance will help you know how much you’ll need to invest upfront before the sale is confirmed. You can also ask the broker whether they will credit this retainer toward the commission if the sale closes successfully. Clarifying these details upfront ensures you know the full scope of financial commitments before proceeding with the sale.
Q29. Do you charge a minimum fee if the sale price is lower than expected?
Why should you ask this?
You need to clarify whether the broker charges a minimum fee if your business sells for less than expected. This helps you avoid unexpected financial surprises.
Some brokers have a minimum fee that applies regardless of the final sale price. This can affect your net proceeds, particularly if market conditions lead to a lower-than-expected sale. For example, a broker may charge a 10% commission but have a minimum fee of $20,000. This means if the sale price falls below $200,000, you would still owe the broker $20,000.
Q30. How is the commission calculated (e.g., a percentage of the sale price)?
Why should you ask this?
It’s important to understand how the broker calculates the commission to accurately estimate your net proceeds after the sale is finished.
Brokers commonly determine their commission based on a percentage of the gross sale price, this includes all assets sold (real estate, equipment, and intellectual property etc.). The commission structure might vary depending on factors like the deal’s structure (e.g., cash, stock, or earn-outs).
If the sale involves contingencies like earn-outs, clarify in detail how the broker’s commission applies to future payments. Some brokers may charge their full commission upfront based on the total sale price, while others may tie their commission to each payment made as part of the earn-out.
by Heather T. | Jan 30, 2025 | Business, Observations, Operations, Selling a Business
Additional information on each question from 50 Questions to Ask a Business Broker When Selling a Business
Q21. How do you ensure the confidentiality of sensitive business information?
Why should you ask this?
This is critical to safeguarding your private business details.
Selling a business is a sensitive matter. If word gets out that your business is for sale, it can create uncertainty among employees, customers, and suppliers, which may disrupt operations or reduce the value of the business. A broker must take steps to ensure confidentiality.
Brokers typically use non-disclosure agreements (NDAs) and limit the amount of information disclosed at the outset. They may also use “blind ads”—advertisements that describe the business without revealing its identity—to attract buyers while maintaining confidentiality. Ask the broker how they screen potential buyers before sharing sensitive information, such as requiring proof of financial stability or serious intent. A reliable broker will have strong confidentiality measures in place to protect your business’s identity while marketing it to qualified buyers.
Q22. What steps do you take to protect the identities of buyers and sellers?
Why should you ask this?
Brokers must take strong measures to protect the identities of both buyers and sellers throughout the sales process. Confidentiality is crucial during a business sale for both buyers and sellers. For sellers, revealing that the business is for sale can create uncertainty among employees, customers, competitors, or suppliers, potentially disrupting operations and reducing the business’s value. Companies buying other businesses, especially competitors, should keep their identity secret to avoid losing their advantage or harming other transactions.
Q23. How do you maintain confidentiality during the marketing and sale process?
Why should you ask this?
Confidentiality is crucial when selling a business, as a premature disclosure that the business is for sale can lead to significant risks, such as losing key employees, damaging relationships with customers and suppliers, or giving competitors an edge. Discretion is essential in preserving the business’s operations and value throughout the sale process.
Brokers typically use a combination of legal agreements, marketing strategies, and information management techniques to safeguard confidentiality.
Here are the key measures brokers take to ensure that both the seller’s and buyer’s identities and sensitive information are kept secure throughout the sale process:
1. Non-Disclosure Agreements (NDAs)
Before any confidential information is shared with potential buyers, brokers require them to sign a Non-Disclosure Agreement (NDA), a legally binding contract that obligates buyers to keep any business information they receive confidential and not use it for competitive purposes.
NDAs are the primary legal tool to protect confidentiality, ensuring that sensitive information (e.g., financials, customer lists, intellectual property) is not disclosed to third parties or misused. This also creates legal recourse if a buyer violates the agreement.
The broker will only release detailed information about the business (such as a financial summary or detailed operational data) to potential buyers who have signed an NDA. Additionally, NDAs often stipulate that buyers cannot contact the seller’s employees, customers, or suppliers without permission, further protecting the business.
2. Blind Listings (Teaser Documents)
Brokers often use “blind listings” or “teaser documents” in the early stages of marketing. These documents provide high-level details about the business—such as its industry, general location, and revenue range—without disclosing the name or any identifying characteristics of the business.
This tactic allows brokers to attract serious buyers without revealing the identity of the business too early. By keeping specific details anonymous, the broker can gauge buyer interest while minimizing the risk of competitors or other parties learning about the sale.
Blind listings typically include information like “a profitable manufacturing business in the Midwest with $5 million in annual revenue” rather than naming the specific company or location. This protects the seller’s identity while still providing enough detail to generate interest from prospective buyers.
3. Controlled Release of Information (Staged Disclosure)
Brokers control the flow of sensitive information, releasing details incrementally as the buyer progresses through the stages of interest and qualification. Only qualified and serious buyers who have signed NDAs, are given access to more detailed information.
Staged disclosure provides sensitive information only to buyers demonstrating financial capacity and genuine interest, thus minimizing the risk of competitors or non-serious buyers accessing valuable business data.
The broker may initially provide potential buyers with a high-level teaser document or a blind listing. If a buyer expresses interest and signs an NDA, they may then receive a more detailed information memorandum (IM) that includes financials, operational details, and business history. The most sensitive information, such as customer lists or specific pricing strategies, is often withheld until due diligence or after a Letter of Intent (LOI) is signed.
4. Buyer Screening and Qualification
Before sharing detailed information about the business, brokers carefully screen potential buyers to ensure they are financially qualified and genuinely interested in purchasing the business.
Screening buyers helps to prevent time-wasters, competitors, or those with no financial capacity from accessing confidential information. This process also ensures that only serious, qualified buyers reach the stages where sensitive business data is disclosed.
Brokers may ask buyers to provide proof of funds, a buyer profile, or details about their acquisition goals before moving forward. By verifying that a buyer has the financial capacity and intention to purchase, the broker can protect the business from unnecessary exposure to unqualified parties or competitors.
5. Anonymous Communication and Initial Negotiation
In some cases, brokers will facilitate early communications between buyers and sellers without revealing the identity of the business or the seller until the buyer has progressed through the screening process.
Keeping the seller’s identity anonymous during initial negotiations prevents sensitive information from leaking to the broader market, competitors, or stakeholders. This is important when selling a business in a competitive industry, where revealing that the business is for sale could weaken its market position.
During the early stages of negotiation, the broker may act as the intermediary for all communications. The buyer might submit questions or initial offers through the broker without directly contacting the seller. The broker will gradually facilitate introductions as the process moves forward, and the buyer shows serious intent.
6. Use of Secure Data Rooms
A secure online data room is a digital repository where confidential documents and information about the business are stored. Brokers often use these platforms during due diligence to give buyers controlled access to sensitive information.
A secure data room allows for the controlled and monitored sharing of sensitive documents. The broker can restrict access to only certain documents based on the stage of the sale process and monitor who views the information, reducing the risk of data leaks.
Upon signing an NDA and showing serious interest, typically then a buyer receives access to the secure data room. The broker can track who has viewed the documents and limit downloads or printing to protect the confidentiality of the materials. This approach also allows the broker to revoke access if necessary, providing additional control over sensitive information.
7. Masked Financials and Redacted Information
Sometimes, brokers may provide financial statements or key business documents with certain details masked or redacted to maintain confidentiality while still providing necessary data to potential buyers.
Masking or redacting sensitive information ensures that buyers receive the financial data they need to assess the business’s value without gaining access to information that could compromise the seller’s position if the deal doesn’t close.
For example, the broker may provide financial statements that show overall revenue, profitability, and expenses but omit specific customer names or contract details. This allows the buyer to assess the business’s performance without having access to proprietary information that could harm the business if exposed prematurely.
8. Timing of Stakeholder Notifications
Brokers may advise sellers to wait to notify certain stakeholders, such as employees, suppliers, or customers, until after key milestones (such as signing an LOI or closing the deal) are reached.
Premature disclosure of a potential sale to employees or suppliers can cause disruptions in the business, such as staff departures or renegotiation of supplier contracts. Timing the notification of key stakeholders helps maintain business continuity and protects the business’s value.
The broker works with the seller to determine the right time to inform employees, suppliers, and customers about the sale. In many cases, sellers wait until after an LOI is signed or the due diligence process has begun to ensure that the buyer is serious and that the sale is likely to proceed.
9. Ensuring Buyer Anonymity
Just as sellers need confidentiality, some buyers, especially strategic acquirers or competitors, may also require their identities to remain confidential until the final stages of the sale.
Buyers, particularly those engaged in strategic acquisitions, may not want competitors or other market players to know about their acquisition plans. Disclosing the buyer’s identity too early can lead to competitive disadvantages or complicate other deals they are working on.
Brokers can maintain buyer anonymity by having initial discussions without revealing the buyer’s name. For instance, a strategic buyer might be referred to as “a regional player in the “X” industry” during early negotiations, with their identity only being revealed once the deal is further along.
Q24. What is the typical timeline for selling a business like mine?
Why should you ask this?
The timeline for selling a business can vary depending on factors such as the size of the business, the industry, and market conditions. However, a skilled broker should be able to provide a rough estimate, typically ranging from a few months to over a year. The process usually begins with preparing the business for sale, which can take a few weeks to several months.
This phase includes gathering financial documents, updating operational systems, and ensuring that all necessary paperwork is in order. After listing the business, finding a suitable buyer typically takes three to six months, although market demand can lengthen this period or shorten in some cases. After a buyer is found, the due diligence and negotiation phase can add another 1 to 3 months, followed by the final closing, which may take an additional few weeks to complete.
It’s important to recognize that certain factors can affect this timeline. For instance, if there are complicating factors such as real estate involved, or if the buyer is looking for specific assets or has unique terms, it may extend the process. The speed at which you and the broker can respond to offers, requests for additional information, and other deal elements will also affect the overall timeline. Working with a broker who is proactive and well-connected can sometimes shorten the process, but patience is key, as a thorough due diligence process is crucial for a successful sale.
Q25. What are the key milestones in the sales process and how do you handle each stage?
Why should you ask this?
Understanding the key milestones in the sales process—such as valuation, marketing, negotiations, and due diligence—along with how your broker manages each one, helps you know what to expect and the level of involvement required from you. Knowing these stages in advance ensures you’re prepared for each step of the process and that you’re aligned with your broker’s approach.
The sale of a business involves several critical milestones that need careful attention and coordination. Being aware of these steps helps you stay informed and engaged throughout the journey, minimizing surprises and setting realistic expectations.
Typical milestones include:
- Initial Business Valuation: The broker evaluates your business to determine its market value.
- Preparation of Your Marketing Materials: The broker creates key documents like teasers, confidential information memorandums, and financial summaries to attract potential buyers.
- Online and Offline Marketing: Your broker markets your business to qualified buyers using various channels and strategies.
- Receiving and Evaluating Offers: Offers come in, and the broker helps you assess their viability and terms.
- Negotiation: Your broker negotiates terms with the buyer to secure the best deal possible.
- Due Diligence: The buyer thoroughly reviews your business’s finances, operations, and legal standing to ensure the accuracy of the information provided.
- Finalizing the Sale: The purchase agreement is negotiated, and the sale is officially closed.
A good broker should clearly explain how they handle each of these stages, the level of communication you’ll have, and what role you will play throughout the process. For instance, ask about their approach to managing negotiations and due diligence, as these can often be the most intricate and time-consuming stages.
by Heather T. | Jan 29, 2025 | Business, Observations, Operations, Selling a Business
Additional information on each question from 50 Questions to Ask a Business Broker When Selling a Business
Q16. How will you market my business to potential buyers?
Why should you ask this?
A strong marketing strategy (e.g., leveraging industry-specific networks, confidential listings, or targeted outreach to private equity groups) can significantly expand the pool of potential buyers. Make sure they are using methods that effectively reach the right audience. A strategic marketing plan is essential for attracting the right buyers and achieving the highest sale price. Understanding how your broker intends to market your business gives you a lot of insight into their approach and reach.
Good brokers typically employ a variety of marketing tactics to promote a business. Ask if they plan to use confidential business-for-sale websites, industry-specific networks, or do direct outreach to their network of buyers. For larger or niche businesses, brokers may also work with private equity groups, strategic buyers, or even international markets.
Ask about the level of detail they’ll include in their marketing materials (executive summaries, teaser documents, and information memorandums) to attract serious buyers without revealing sensitive information too early.
Q17. What types of buyers do you typically attract (strategic, financial, individual)?
Why should you ask this?
Understanding the broker’s network of buyers is crucial in determining if they can connect you with the right buyer. Strategic buyers (companies in the same or related industries) may pay more for a business, while financial buyers (private equity firms, investors) often focus on a businesses profitability and scalability. Individual buyers may have different expectations regarding price and after the sale involvement.
Different types of buyers, such as strategic or financial buyers, have unique motivations and expectations. Your broker should find buyers who will help you achieve your goals, whether that’s getting the highest price, keeping your company’s culture, or something else important to you.
Ask the broker what percentage of their past deals have involved strategic buyers versus financial buyers or individual investors. This will give you some insight into their existing network and the types of potential buyers they’re familiar with.
For example, a strategic buyer might value your business for its customer base or technology, while a financial buyer might prioritize cash flow. The right type of buyer will depend on your goals, whether you’re looking for maximum cash upfront, a quick exit, or ongoing involvement. Ensure that the broker’s typical buyer base aligns with your desired outcome.
Q18. What online platforms do you use to promote listings?
Why should you ask this?
A broker’s online presence can reveal how modern and up to date their own marketing strategies are, and that can often mirror what they will do to promote your business.
A broker’s choice of online platforms significantly impacts how effectively their business is marketed to potential buyers. In today’s digital world, a broker’s online presence is a key indicator of their marketing reach, strategic approach, and ability to connect with a wide range of buyers. By understanding the platforms they use, you can assess whether they have the tools and resources to maximize your business’s visibility.
Brokers typically use a mix of industry-specific marketplaces, general business-for-sale websites, social media, and other digital strategies to attract qualified buyers. Here’s an overview of some commonly used online platforms and their benefits:
1. Business-For-Sale Marketplaces
These platforms list businesses on the market, attracting individual buyers, private equity firms, and strategic acquirers seeking acquisitions.
Some popular platforms include:
BizBuySell
BizBuySell is one of the largest and most recognized online marketplaces for buying and selling businesses. With millions of monthly visitors, listing your business here ensures wide visibility and access to a large pool of potential buyers, from individuals to private investors.
BizBuySell enables brokers to add detailed business information while protecting confidentiality. They also offer tools for managing inquiries, which can help filter out unqualified buyers early in the process.
BusinessBroker.net
Another leading platform for listing small and mid-sized businesses, BusinessBroker.net attracts a broad audience of buyers and investors. A broker who lists on this platform can provide additional exposure, particularly if your business falls within a popular industry category.
This platform includes resources like valuation tools, making it appealing to buyers looking for detailed insights, and helping your broker engage with more qualified leads.
LoopNet
Although primarily known for commercial real estate listings, LoopNet also includes business sale listings, especially those that include real estate components. This platform is beneficial if your business involves significant real estate holdings or physical assets that need to be highlighted as part of the sale.
LoopNet reaches buyers who are specifically interested in businesses with real estate, which can enhance the appeal of listings that have an asset-based component.
BusinessesForSale.com
This global platform provides access to a diverse international buyer base, making it particularly useful if you’re open to international buyers or if your business operates in industries with global appeal (e.g., technology, hospitality).
The international exposure of BusinessesForSale.com allows your business to reach buyers beyond your local market, increasing the chances of finding a buyer with specific expertise or a strategic interest in your business.
Crexi
Crexi (Commercial Real Estate Exchange, Inc.) focuses on commercial real estate transactions but is also useful for businesses tied to real estate, such as retail, hospitality, or industrial operations.
Known for its user-friendly interface and analytics tools, Crexi helps sellers market properties effectively while providing buyers with detailed insights. It’s ideal for those seeking a modern, data-driven platform for business-related property transactions.
2. Private Equity and Investor Networks
Besides general marketplaces, many brokers will also target private equity firms, venture capitalists, and high-net-worth individuals through specialized platforms. If your business is larger, growing quickly, or has high profitability, these networks are crucial.
Axial
Axial is a platform that connects small to mid-market businesses with private equity firms, family offices, and strategic acquirers. If your broker is using Axial, it shows that they are actively targeting financial and strategic buyers who are looking for businesses to invest in or acquire.
Axial’s network of professional buyers is particularly attractive for businesses looking for growth capital, partnerships, or partial exits. If your business is appealing to institutional investors, listing on Axial increases your chances of connecting with sophisticated, qualified buyers.
DealStream
DealStream, (formerly MergerNetwork) is another platform used by brokers to connect with private investors, mergers and acquisitions (M&A) firms, and industry-specific buyers. It’s known for attracting a more professional buyer pool than general business-for-sale sites.
This platform serves higher-end deals, making it more suitable for businesses with substantial revenue or strategic value. If your broker uses this platform, it shows they are aiming to connect your business with institutional buyers or strategic acquirers rather than individual investors.
3. Social Media Marketing
Social media has become an increasingly important tool for business brokers to promote listings and connect with a wider audience. Effective use of platforms like LinkedIn, Facebook, and X (formerly Twitter) can show a broker’s ability to modernize their approach and reach tech-savvy buyers.
LinkedIn
LinkedIn is a powerful tool for reaching professional buyers, including executives, strategic acquirers, and private equity groups. Brokers who actively promote listings on LinkedIn can tap into a network of professionals who may be interested in acquisitions to grow their own companies or investment portfolios.
LinkedIn also allows brokers to join relevant industry groups, publish articles, and connect with potential buyers directly, which can give your business exposure to a more targeted audience. If your business operates in a B2B or professional services space, LinkedIn can be especially useful.
Facebook
While primarily a social platform, Facebook is used by brokers to reach individual buyers and investors. Brokers might create targeted ads or post listings in industry-related groups.
Facebook’s robust ad targeting allows brokers to tailor their promotions based on location, industry, and buyer behavior, reaching potential buyers who may not be actively searching business-for-sale platforms but are still interested in entrepreneurial opportunities.
4. Search Engine Optimization (SEO) and Paid Advertising
Many modern brokers go beyond traditional listing platforms and use digital marketing techniques such as SEO and paid search advertising, to increase visibility.
Search Engine Optimization (SEO)
SEO allows brokers to rank their listings higher in search engine results when potential buyers are searching for relevant business opportunities. For example, a broker with a strong SEO strategy might ensure that when someone searches “businesses for sale in X industry” or “buy a company in Y location,” your business listing appears at the top of the search results.
SEO helps attract organic traffic from qualified buyers who are actively looking for business opportunities, driving more attention to your listing without additional advertising costs.
A good broker won’t just concentrate on Google, but also focus on Bing (Alexa from Amazon draws a lot of information from Bing among some other content sources) and lesser search engines.
Google Ads (Paid Search Advertising)
Paid search advertising (e.g., Google Ads) allows brokers to promote your listing directly to potential buyers based on their search queries. If your broker uses paid ads, they can target specific keywords and demographics to ensure your listing appears in front of qualified buyers.
Google Ads can generate immediate visibility for your business listing, especially in competitive markets where organic traffic alone might not be enough. Paid ads also offer geographic targeting, ensuring your listing reaches buyers in specific regions or countries.
5. Industry-Specific Websites and Platforms
Besides general business-for-sale platforms, some industries have niche websites and forums where people buy and sell businesses. A broker with industry expertise may use these specialized platforms to attract buyers with a specific interest or expertise.
Franchise Direct (for franchises)
If your business is part of a franchise, brokers may list it on franchise-specific platforms like Franchise Direct. These platforms attract buyers specifically looking for franchise opportunities, ensuring your business is seen by the right audience.
Franchise-specific platforms have buyers who are familiar with the franchising model and are likely to be more serious and knowledgeable about the requirements and costs associated with buying a franchise.
BizQuest
BizQuest is an industry-specific site that caters to certain types of businesses, such as restaurants, retail, and manufacturing companies. It attracts buyers who are specifically looking for businesses within these industries.
BizQuest’s focus on specific sectors means that it often draws more qualified buyers with industry knowledge and experience, which can lead to quicker and more informed negotiations.
Q19. Do you have an existing network of potential buyers or sellers? Do you maintain a database of qualified buyers, or will you be reaching out to new prospects?
Why should you ask this?
While confidentiality may prevent the broker from disclosing specific buyer identities, they should be able to provide evidence of their network.
A broker with an established network of qualified buyers can streamline the selling process, while one without such a network might take longer to find suitable candidates. A strong, relevant network enhances the chances of a quick sale at a favorable price.
Some brokers have access to large, targeted databases of buyers, including strategic, financial, and individual buyers, while others may rely more on outreach and advertising. If a broker has a pre-vetted list of buyers, this can significantly speed up the process. Ask them for details about their database—such as the size of the list, how often it’s updated, and whether they can tailor it to specific industries or locations. If they mainly source new prospects, inquire about their process for qualifying buyers and ensuring they are serious and capable of completing the deal.
Q20. What services do you provide during the due diligence process?
Why should you ask this?
How will the broker assist with making the due diligence (DD) process smoother? Do they have a checklist of essential due diligence items? Will the broker serve as the main point of contact and project manager throughout the due diligence period, so you don’t have to manage it yourself?
by Heather T. | Jan 28, 2025 | Business, Observations, Operations, Selling a Business
Additional information on each question from 50 Questions to Ask a Business Broker When Selling a Business
Q11. Do you have any case studies or success stories I can review?
Why should you ask this?
In case studies or success stories, examine the evidence they provide on their website for tangible items such as photos, difficult-to-fabricate financial records, and publicly verifiable details.
For example, if you’re looking for records in California, you can search the California Secretary of State’s website for business entity filings, which provides details on corporations, limited liability companies (LLCs), and partnerships.
Q12. Do you have a team supporting you, or are you handling everything on your own?
Why should you ask this?
Your broker should have a support team to help with the selling process. Without one, they’re managing everything on their own. A team ensures that each aspect of the sale gets the attention it needs.
No single broker can be an expert in all the areas required to sell your business. Marketing, valuation, negotiation, tax planning, and working with buyers each demand focused time and specialized expertise.
While it’s not uncommon to find solo brokers in the industry, it’s important to evaluate how many listings they manage each year and how they handle each stage of the process. If they’re overseeing every detail of multiple deals at once, realistically, they may not have the time or bandwidth to give your business the attention it deserves.
Q13. How will you determine the value of my business?
Why should you ask this?
Brokers use various valuation methods, such as earnings multiples, revenue multiples, or asset-based valuations. Understanding the broker’s approach helps ensure it aligns with both what you expect and the current market conditions.
Valuation is one of the most crucial aspects of selling your business. An incorrect valuation can result in leaving money behind if it’s undervalued, OR failing to attract buyers if it’s overvalued.
Brokers typically use several approaches to determine your business’s value, including income-based methods (such as EBITDA multiples or DCF-discounted cash flow analysis), market comparables (comparing sales of similar businesses), or asset-based valuations. Ask the broker to explain their preferred method and why it suits your business and explain the terminology in layperson’s terms.
Q14. What factors do you consider when valuing my business?
Why should you ask this?
A range of factors influences valuation, so it’s important to understand which ones the broker considers most significant for determining your business’s value. This question helps you find out if the broker is considering important factors such as growth, competition, your customers, and any unique assets that could affect the price.
Key factors to consider include financial performance (such as revenue, profit margins, and cash flow), customer base (diversity, contracts, and loyalty), industry trends, intellectual property, brand strength, the competitive environment, and growth potential. Each of these elements will affect the valuation, and brokers may prioritize them differently. For example, a business with strong recurring revenue and long-term customer contracts might justify a higher multiple estimate than one with declining sales, even if both are similarly profitable. Keep in mind what you think a business might be worth isn’t necessarily what it IS worth. Even though you put $200K into renovations to a property doesn’t mean you can raise your estimated price by that much and get it back.
Q15. Can you walk me through how you determine the valuation?
Why should you ask this?
Understanding the step-by-step process the broker uses to evaluate your business gives you a clearer picture of how accurate and thorough their valuation will be. Having the broker explain their valuation process will help you gain a better understanding of how they arrived at the final price and help you feel confident that it’s realistic.
Ask the broker to explain how they collected data and how they compared your business to others in the market. A good broker should be able to outline their process clearly, which may include analyzing your financials, conducting market research, and assessing operational factors. This also helps you understand whether they’ll rely solely on historical data or if they’ll consider future projections and strategic opportunities. Make sure the broker explains their reasoning in simple terms so that you can fully grasp the basis of their valuation.
