Can they prove where the money is coming from? If you got a response of a good financial plan, then they may be a good prospect, but you should still obtain proof that the finance can be obtained. Obtain a credit report, company report (if it is a current business owner), financial statement, or a bank reference if you feel necessary.
Also important, are they capable of running a business? What is their previous experience? Ask the prospect to compile a resume so that you can review how suitable they are for running your business.
Determine why the prospect wants to buy your business. Remember, at this stage, the only information they have is the information you presented on the advert or the information given out by the business broker, so their response could be restricted.
If at any time you feel uncomfortable with the prospect, end it straight away: you will be liaising with them for quite some time if you qualify them as a serious buyer.
You may feel uneasy asking personal questions but those prospects that reply with confidence are often those that will proof qualified: they expect sellers to ask these questions and will respect you for it. Remember, it will be their turn to ask the questions later on.
5e) Who are the Best Buyers?
When qualifying buyers, you should look out for the following as they are often the best prospects for buying your business:
Those that are looking for acquisitions for their existing business
People who have been in employment for some time and are aiming to run their own business. At the same time, they should have the financial backing to do so
Investors- aiming to hire other people to run the business for them
If any competitors show interest, you could see them as someone trying to expand their business. This can be dangerous as they may just be there to lap up the information you are giving out to use for their advantage. Consequently, you should consider your other prospects before accepting them as a qualified buyer. Remember, they will not know that it is your business (if you have kept confidentiality), but by the brief descriptions you have given, they may have put two and two together.
Once you have made your decision on who is a qualified buyer and who is not, you should inform those that you consider time wasters that you are not prepared to take their interest any further.
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