Coming to terms with the fact that it’s time to implement the exit strategy you prepared for your online business is a brave decision. You spent hard-earned money and precious time getting your online shop from the drawing board to where it is now, so you need a broker that will give you a graceful exit by getting you a deal that provides maximum profit value for your online business.
So your choice of an online business broker is just as important and crucial as the timing of your exit from being an e-commerce business owner.
Here are some of the top considerations you should keep in mind when choosing an online business broker:
The Broker’s Track Record
There are a lot of website business brokers out there, but you really need someone with enough experience and a track record to know exactly how to get you a great deal for your online business. When interviewing potential business brokers, ask them if they have any credentials to back their claim. Ask if they have certifications from any international brokerage associations. Allow them to discuss past deals, whether successful or unsuccessful, and any existing listings, and how they’re going.
When it comes to doing things like brokering for online businesses, there is just very little that can substitute actual experience.
Past Client References
While the broker you’re eyeing might have an impressive track record in terms of successful sales, their clients might have something else to say about their seller-broker relationship. They might produce results but what about the way they talk to people? Do they pay attention to the small details? Do they listen to the sellers’ suggestions or do they just like doing things their own way?
These are the things you might not discern even with an interview with the broker. It’s very important to look at past client references, so you at least know what to expect when you do engage in business with the said broker.
When you pay good money to hire a broker, they better be available to attend to your concerns at once, as long as you get in contact with them within the business hours you set for related communications. Don’t be afraid to spend a little longer on the interview process if it means you can properly gauge how well they communicate with you and answer your questions.
Sales & Marketing Plan
Right from the first interview, you should ask your broker-interviewees if they already have concrete ideas as to how they plan to sell your online business. They should have more than one plan, too, just in case Plan A doesn’t work out. You want a broker with several different ideas on how they can promote and sell your business, for better chances of closing a successful deal.
Find out how they plan to offer your business to potential buyers and on the final interview, you should already hear the elevator pitch of your shortlisted brokers.
At this point, you should also be on the same page when it comes to things like advertising budget and broker fees.
Agreeable Business Valuation
Owning an online e-commerce store is a big deal, and you need a broker who appreciates that. If you personally won’t entertain lowballers, then your broker shouldn’t, either. At the same time, their valuation of your online business shouldn’t be unrealistically high that it will leave your listing unnoticed for months. Basically, you have to agree on both the low-end and the maximum value of your price range.
Broker’s Buyer Network
Here’s a tricky one. You might think that a broker with an extra-wide prospect list is better than one with a smaller buyer network. But here’s the thing: brokers who take pride in having thousands on their mailing list are usually used to sending generic emails that do not serve to create meaningful relationships with their recipients. Those with a smaller, more targeted network can cultivate deeper connections that could turn into potential sales.
With that, good luck with choosing a qualified broker for your online business, and here’s to hoping you close a great deal soon!