Why Isn’t My Business Selling?

It can be frustrating when your business has been on the market for a long time. You’ve spent a lot of time building and nurturing it; you just want to see it go into the right hands and meet its potential.

If you’re here to troubleshoot why your business still hasn’t sold, we have you covered. We’ve used our endless business selling experience to help you find solutions to common problems. Learn more below!

You Don’t Have a Clear Picture of the Buyer

Like any kind of sale, you need to know your buyer. They use customer profiles in sales, and the process should be similar for business sellers. You need to ask yourself who you see owning the business after you. What skills do they need to have? What values? What experience?

All of this information should build a picture of the desired buyer, and from there, you can create a business listing that caters to them.

If your business has been listed for a long time, it could be time to go back to the drawing board and recreate that listing with a clear buyer profile in mind. This will also help if you choose to use a business selling platform, like DealXchange, as it can help you match with the perfect buyer more quickly.

Your Business Listing Lacks Photographs

Business listings must have high-quality photographs. There is no way around it. You need to show your buyers what it is they’re actually buying when they put in an offer.

Photographs should show your physical premises so that buyers can get an idea of the condition it's in, as well as give them an opportunity to envision themselves there. If you’re including machinery, technology, or other equipment, you should photograph this too.

The more high-quality pictures you add to the listing, the better.

If you haven’t already added pictures, or you’ve only got a few, take the time now to update the listing. Consider hiring a professional photographer to ensure the pictures show your business at its absolute best.

The Market Isn’t Right

Unfortunately, you can’t do anything about the sale of your business. It’s not you and your business; it's the market.

You may be desperate to sell right now. Perhaps you have plans or new ventures you want to get on with, but if the market isn’t right, you may find yourself settling for a price below what you wanted. If you can, consider relisting the business when the market is right to give it a better chance of selling.

But how do you know if the market is good?

There are a few good indicators that it could be the right time to sell. In general, when the economy is strong, you can sell more easily, simply because more people have more money to spare. This is also true of the market in your particular industry. Industry markets shift at different times throughout the year, so if you keep an eye on when your industry market is peaking, you will know when to sell.

Lastly, certain points during the year will always be a good time to sell. One of them is the end of the financial year (EOFY). At the EOFY, businesses are looking over finances, earmarking money for expansion, and taking advantage of tax incentives, all of which make it more likely that people will invest in a new business.

The Price is Wrong

Valuing a business can be difficult, particularly if you do it yourself. While you may think you’re being fair, you have a vested interest in your business and the price it sells for, meaning you’re never going to be totally unbiased.

We recommend seeking an external valuation to ensure you’re not asking for too much for your business. Working with a business broker may help. They can give you a value that reflects your offering and ensures you get a decent profit.

Your Business Has Too Many Legal Liabilities

A potential buyer will always do their due diligence and ensure your business is in good condition before buying. This means they will find out if you’re in debt, are dealing with legal disputes, or are not compliant with industry regulations.

Before listing your business to sell, you must ensure your house is in order. This means ensuring your business is seller ready by wrapping up legal issues, ensuring everything is compliant, licenses and permits are up to date, and doing what you can about any outstanding debt.

We understand that sometimes resolving these issues takes longer than you would like, and you just want to get the business listed. In these cases, be upfront with buyers. Let them know what is happening, and don’t wait for them to stumble across it themselves.

You may need to negotiate a new price if you’re leaving them to deal with these issues, but it is better than the deal falling through.

You Haven’t Marketed the Sale

Like anything you’re trying to sell, you will need to market your business. This is to let people know it is actually on the market. You will need to inform potential buyers why they should buy the business and what is in it for them.

If you don’t feel marketing is your strong suit, you may want to work with a broker or business selling platform. Both brokers and platforms like this have the resources to market the business beyond what you can do. They can ensure the right people hear that your business is on the market.

You’re Using the Wrong Channel for Selling a Business

If your business hasn’t sold using your current method, consider moving it to a completely new channel. One of the easiest ways to sell a business in the digital age is to use a business-selling platform like DealXchange. 

These platforms can consolidate all the features you need to build a listing, market your business, match with potential buyers, and sell your business safely and securely.

With expert advice and guidance and a network of active buyers, the DealXchange platform is one of the best places for you to list your business right now. You can schedule a demo of the platform today to learn more.

Final Thoughts

Your business may not be selling for many reasons, and many of these issues can be resolved relatively quickly. Our list is by no means extensive, but covers the most common reasons your business may not have sold.

If you want more guidance and advice on selling a business, then contact Eden Exchange now. We have been working with business sellers for years and can support you as you try to sell your business on an international market.

Who we are

Eden Exchange is an integrated multi-channel platform, simplifying business buying and selling. We match, refer and connect business buyers, sellers & brokers in an ecosystem that facilitates frictionless franchise, business and finance transactions. Visit www.EdenExchange.com and connect with our engaged and multidimensional transaction network today.