Who will buy your franchise business?There are many reasons people choose to buy a franchise business. When considering selling your business it pays to spend some time identifying who is likely to buy your franchise - put yourself in their shoes and find out exactly what they will be looking for.
There are many types of prospective franchise buyers; they can be looking for an investment, a change of lifestyle, new immigrants in the country and those that have been made redundant or find themselves out of a job mid-life. All have their own reasons for wanting to purchase a franchise, and many have already identified the type of franchise business they want to purchase and the price they are willing to pay.
When selling your franchise
When selling a franchise consider the type of buyers your franchise is most likely to appeal to, what they will be looking for and how much they are willing to spend to secure your business. An important question to ask yourself is are you meeting the market? After all, your franchise is only worth what someone is willing to pay for it, so it makes sense to marry up the franchise with your most likely buyers. These are the people that are searching for the type of franchise for sale opportunity you are selling and who will need to recognise the value attached to it.
The best way to target the prospective buyer and maximise your sale prospects is to define your buyer and their needs and ensure your marketing plan has the right mix to reach this group, thereby ensuring the best value for your marketing dollar. This might entail engaging professionals, making it easier for you to continue managing your franchise throughout the marketing and sale process. Ensure you formulate a marketing strategy around exposing your business to specific buyer groups and make an effort to understand the steps in selling - you are then well on the way towards negotiating a price and terms that are suitable to you.
Franchises can take some time to sell - influencing factors include price, type of business, ease of finance and current market conditions. The process needs to be managed efficiently, exposing the opportunity widely through print, internet, direct mail or email networks.
To sell your franchise list your franchise for sale here.
By Richard O'Brien - nzbizbuysell
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In this category:
- How to write a great franchise ad
- Who will buy your franchise business?
- The difference between profit and value
- What to ask before you sell your franchise
- Using a business broker to sell your franchise
- Is it time to sell your franchise?
- Selling your franchise for a great price
- What do franchise business buyers want?
- Marketing a franchise for sale
- Selling a franchise and your exit strategy