Selling a business takes a lot of preparation. Don’t forget to consider the buyer and what may be motivating them to become business owners, and specifically to want to buy YOUR business.
Emotional motivations play a key role in understanding the buyers that may be drawn to purchase a business.
The emotional pull of buyers can include:
Knowing what motivates buyers, and in particular, what motivates entrepreneurs to want to own a business is key developing a sales strategy that can get the right owner to invest in what you are selling.
Understanding What Motivates Buyers
To understand buyers, analysts look at and track factors affecting business markets and business buying behavior.
Business buying behavior is influenced by economic, company, individual, and interpersonal factors.
For example, economic factors include such factors as:
- Regulatory changes
- Technology changes
- Competition
- Fiscal policy and monetary policy
Buyer motivation refers to the individual reasons that drive a person to make a purchase.
A buyer can be influenced by a variety of factors, including practical needs, emotional desires, and social pressures.
Understanding buyer motivation is important for businesses selling products and services, but also works for selling the actual business because it can help tailor efforts to appeal to these motivations.
To begin, a seller may want to ask:
- What needs or problems is my business solving for the buyer?
- What desires or aspirations does my business fulfill?
- What emotions does my business evoke?
- What motivated you to own your own business?
The answers can be used to tailor marketing and sales efforts to be more relevant and appealing to the buyer.
What Motivates Entrepreneurs to Buy Businesses
The main reason most people want to own a business may seem obvious. They want freedom.
The freedom of being the boss comes with schedule flexibility as well as the agency of making all the decisions.
A less obvious motivation can be excitement. Taking a risk draws many to the task, one that may come with a significant reward.
Building something from scratch, or moving an existing business forward is desirable to those wanting to take charge of their professional lives. But why?
A survey conducted by Cox Business asked small business owners what appealed to them about launching their own venture. Findings include:
Freedom and passion, not money, was the main motivation of these business owners – more than half of small business owners start their own businesses to be their own boss.
The second motivating factor was the aspiration to build something from the ground up.
Nearly two-thirds of respondents said they had started their own business for one of those two reasons. Just 8% of respondents said financial gain was their main motivation.
The research was based on 605 responses from small business owners and managers at Cox Business.
Attracting Buyers Who Are Motivated
The emotional pull of buyers should not be discounted. Getting the correct valuation is important, but the emotional pull that comes from emotional motivations that draw entrepreneurs is important in the sale, too.
Market your business with the emotional buyer motivations that most appeal to entrepreneurs, such as:
- The need for flexibility
- The impulse to be in charge
- The pleasure of building something from the ground up
- The aspiration to be independently successful
As just 8% of small business owners revealed, money is often not the top motivator, so drive the passionate owners with how your business works.
Want to know more?
Finding out more about motivations can also include conducting market research and talking to other business owners to get a better understanding of the buyer’s motivations and priorities.
By understanding the buyer’s needs, you can tailor marketing efforts to be more relevant and appealing to the buyer.
Focus on the lifestyle and benefits of entrepreneurship, and most importantly the way YOUR business would appeal to these motivations to get the right buyer – and desired price.
Michigan Business Broker Nadir Jiddou is Here to Help
Having bought and sold businesses for more than 18 years in Michigan, Nadir Jiddou utilizes his contacts and experience to help his clients achieve their objectives quickly.
Call us at (248) 220-3274 or look at the business listings we currently have on hand to see what might be a fit for you.