In this BIZBUYSELL review, we will discuss different aspects of their system and how it can help you. By knowing beforehand what to expect from the sale, you will have a head start on the entire process. Any edge is valuable in the competitive world of e-commerce.
As a business owner in the age of e-commerce, it’s easy to feel like you have to do everything yourself. In an age that values independence, having a good team around you can give you the leading edge. The same thing is also true when the time comes to sell your business.
It’s possible that you could find a buyer for your business on your own. However, if you are not as well versed in the process, there’s a lot to lose. There are hidden costs, tax considerations and other surprises along the way. If you are not completely familiar with them, you could end up taking a loss.
Business owners know that teamwork is the secret to success. Delegating is an important skill for any manager or owner. If this principle applies to running a business, then hiring a team to help sell it is a no brainer. You may be an experienced business owner but not an experienced business seller.
BIZBUYSELL is an online business broker. They help owners with the sale of their online or brick and mortar business. By having a team on your side with experience, you can rest a little easier. Especially if this is your first time selling a business.
However, they are not a true business broker. In fact, BIZBUYSELL is a business for sale marketplace.
Better Alternatives to BIZBUYSELL
As buyers and sellers of business ourselves, we’ve had the best sale valuation and customer service from the following broker.
Overview of BIZBUYSELL
BIZBUYSELL is one of the oldest online business brokers in the world. Founded in 1996, they have been selling companies since the first dot com boom. With that kind of longevity, there is good reason to have them in your corner.
Seeing as they have been around for so long, BIZBUYSELL boasts a huge roster of companies for sale. At any given time they have upwards of 45,000 listed at once. This makes them a far reaching marketplace that can offer a big audience.
BIZBUYSELL has a monthly site traffic of over 1.4 million. Due to its extensive inventory, they attract a lot of views. In business, that kind of exposure is incredibly valuable. In that way, your business is just like any other sale.
Unlike a lot of other business brokers, BIZBUYSELL offers all kinds of business opportunities. Although they have many properties, that is not all they do. They sell franchises, business real estate and much more.
BIZBUYSELL also works with a large pool of independent brokers to offer even more opportunities. Thousands of brokers are subscribed and are adding businesses every day. By listing your company with them, you are guaranteeing that it will be seen by a large audience.
Types of Businesses BIZBUYSELL Sells
Perhaps the most distinct feature of BIZBUYSELL is its variety of inventory. With such a huge marketplace, they sell any kind of company. Most online business brokers only deal web based or e-commerce businesses. Although the bulk of their roster is online, many are brick and mortar.
With that kind of assortment, there is almost no limit to the kinds of business that can be listed. You can even sort companies by the market they are in. This allows buyers who are looking for brick and mortar businesses to narrow down their search.
The fact that BIZBUYSELL includes brick and mortar businesses makes them unique. Most online brokers only deal with online businesses, so this makes them an outlier. This feature alone is worth giving their marketplace a browse. The eclectic nature of their roster brings in a huge audience.
By being open to so many different kinds of business, BIZBUYSELL isn’t as specialized. This can be both a positive and negative. While you have a bigger audience, it is not as targeted. Depending on the type of business, this may not be an issue.
BIZBUYSELL is unique in that they also sell franchises. This could be a good opportunity if you are looking to expand your business. Not all business brokers offer this service, so it might be a good choice for this category.
BIZBUYSELL also has an interesting asset marketplace. Here, they have listings for things like furniture, displays and more. This could be a great feature for people coming to them looking for a new business venture.
BIZBUYSELL Valuation Process
Like so many other things about them, the valuation process at BIZBUYSELL is unique for the industry. They offer three different types of valuations. Depending on what step of the process you are in, you will choose which one is for you.
The BizWorth Calculator is the quickest, least detailed valuation. There, you will provide a few details and will be given a ballpark value. This could be useful if you are just starting to think about selling. It can give you a quick idea of if you are ready or not.
The second valuation option is the BIZBUYSELL Valuation Report. This report will give you comps for similar businesses that they are already selling. This information is incredibly valuable for the seller. It will give you an idea of where to start price-wise.
The third and most comprehensive valuation is the Dealcoach valuation. With this one, you will get one on one service and attention. With this valuable insight from a broker specifically tailored to your business, you can be more accurate. The secret to a successful business sale is knowing what you are worth.
All of these valuations can offer you some kind of starting point. The hardest thing about selling a company is understanding your value. It can be tempting to take any offer and being armed with that information can save big money.
Sales Process
Depending on what route you are going to go, the sales process at BIZBUYSELL can vary. It is entirely possible to evaluate, list and market your company all on your own. If you already have the information you need, this could be a good option.
Once your business is listed, it will be among the 45,000 other businesses on BIZBUYSELL’s roster. This means that it is going to be very important that you have quality marketing materials. Standing out from the crowd in the marketplace could make all the difference.
BIZBUYSELL offers a free Guide to Selling Your Small Business that can help you be prepared. By following the guidelines laid out there, you can have everything you need before the listing goes live. This is a valuable insight into the process, especially since it was written by brokers themselves.
In this guide, you will learn tips about copywriting, marketing and other important things for your listing. The years of collective experience in this guide are worth paying attention to. They are specifically designed to be effective on BIZBUYSELL’s platform. That kind of information should always be utilized as much as possible.
With a successful listing, most people will start to receive offers fairly quickly. Most reported that they had a few prospects within the first week. By listing your business to such a big audience of 1.4 million people, your chances go up.
BIZBUYSELL Success Rates
Success rates on BIZBUYSELL vary. Unlike a lot of other online business marketplaces, they are fairly open. There isn’t a lot of regulation as far as listing goes. This means that the success of your sale will depend on the preparation you do.
Should you choose to do your research and valuation yourself, your success rate could suffer. By hiring one of the brokers to give you individual help, you could catch things you otherwise would not have. There are many fees and tax considerations that you should be aware of and brokers can help.
Many people report that because they did their own valuation and marketing, they had more success. This is possible if you have the confidence and experience to know the right moves. Marketing is everything in sales, even in very subtle ways.
When your business is listed, you will receive offers in the form of letters of intent. With these, buyers will list their plans and terms for the purchase. By pulling from a wide audience, it’s possible to use these letters to find a perfect match.
Many people want to make sure that their business is in good hands when they sell it. They want to make sure that their legacy is secure and protected. The huge amount of traffic at BIZBUYSELL means that you have higher odds of finding the right buyer. This can lead to great peace of mind whether you are retiring or onto the next venture.
Fees Charged by BIZBUYSELL to Sell a Business
There are fees associated with listing your company with BIZBUYSELL. Unlike a lot of marketplaces, though, they are straightforward, flat fees. This will allow you to plan ahead for your company’s sale and it’s costs.
To just list your company on BIZBUYSELL’s site, the Basic Ad is $59.95 for 6 months. If you would like a shorter, 3 month term, it is $79.95. This means that during this term, you can only list your site with BIZBUYSELL.
If you would like a Showcase Ad, a 6 month term is $79.95. The shorter, 3 month option is $99.95. The Showcase Ad offers more room for photographs and other pertinent information that attracts more buyers. All of these prices are subject to change.
Should you want to take advantage of the other services like an individual broker, the fees are higher. The ad prices don’t change, but the brokers have their own fees. Most business brokers will charge somewhere between 5% and 15% depending on your final sale. This could be a good option for people who want someone else to handle the nuts and bolts.
Choosing which plan is right for you takes a lot of information. Doing a thorough valuation can help you determine whether getting the extra help will be worth it. The valuation will also tell you whether or not you are ready to sell to begin with.
Pros and Cons of Using BIZBUYSELL
Pros:
- Ease – BIZBUYSELL’s process is one of the easiest of all the business marketplaces. If you were so inclined, you could have your business listed in less than 24 hours. This makes it a good option for people who want a fast turnaround.
- Price – The pricing tiers for BIZBUYSELL are very affordable. This budget friendly approach makes selling a company accessible. Amazon businesses and small retailers would benefit the most from this.
Cons:
- Help is extra – If you want any kind of help with selling your company, you are going to pay extra. Depending on the person, this fee could be worth it but if not it’s a major downside. This could entice people to list before they are ready and lose money.
- Little oversight – The seller is largely responsible for their own listing. This means that there is room for scams and dishonesty. It wouldn’t take much to leave out some expenses and bury a buyer in debt.
- Lots of competition – BIZBUYSELL lists the number of businesses they have for sale as 45,000 at any given time. This is a massive number and even though they are categorized, it can be easy to get lost. Standing out from the crowd should be the first priority for any seller.
- Not a true business broker – BIZBUYSELL does help to broker the sale of businesses, but they’re not a true business broker where you get the personalized touch of a business brokerage form. They are really a business for sale marketplace.
Conclusion And Verdict
BIZBUYSELL has a lot of good things going for it. It is a marketplace with a low point of entry and years of experience. As long as you know what you are doing, you could be successful.
However, there are types of sellers that would not be a good fit for BIZBUYSELL. If you have spent your life building a business and want to sell, this might not be a good choice. Throwing your listing up with every other start up could be detrimental to its sale.
For start ups and online businesses that have fast turnaround, this is a great option. The speed and ease is built for the tech industry. If you are the type of entrepreneur who likes to move fast and break things, they are perfect. You could technically have your company sold in a matter of weeks or even days.
The only way to know if BIZBUYSELL is the right option for you is to do some soul searching. No one knows your business as well as you do, but someone else may know more about selling it. This is an important consideration to make when choosing to use a broker or not.
Whether you are retiring or turning over start ups, there are options for you. Hopefully, this BIZBUYSELL review has given a detailed picture of the process. With this information, you are ready to decide if you want to take the next step.
