Getting It Right the First Time

Though there may be hundreds of businesses being advertised on websites “for sale”, at any given day there are only two types of businesses in the market: Those that don’t sell; and Those that sell.

Bronwen Barnard

09 September 2025

Summary

Though there may be hundreds of businesses being advertised on websites “for sale”, at any given day there are only two types of businesses in the market:

Those that don’t sell; and
Those that sell.

The main contributing factors for businesses that sell are:

It is priced correctly; and
Figures can be proved/verified

When considering selling your business, it is most important to set a market related value. It is recommended that you obtain the service of a professional Business Broking Firm with years of experience.

Setting a market related asking price will not only attract more interest but also qualified buyers. The biggest determining factor of the value of a small/medium business is the bottom line – PROFIT!

Buyers won’t consider the potential of a business when determining the price. They will only consider the profit and what they are willing to pay for it. The fact that the business has got huge potential or future growth prospects, merely indicates that people will be willing to buy. If there is no future for the business, there is no buyers and henceforth no value.

The price that buyers are willing to pay is however set by the current earnings of the business.

In preparing your business to go to market, it is extremely important that you update your financial records. Buyers will thoroughly examine and verify your claimed profits, and this can only be done if you are able to prove the numbers.

Informed buyers will also “test and compare your numbers” with SARS, your franchisor, your landlord, your suppliers and the like.

Selling a business is a huge undertaking and a time-consuming exercise. Make sure that you align your efforts and get the basics right by setting a market related price and being able to prove your profits.

Author: Bronwen Barnard

More Sellers Knowledge Bank

Get the latest information, valuable tips and share in the professional knowledge of business experts on selling a business

Inika Pieters

Cash in the Bank Is Not the Same as Cash You Can Use

A healthy bank balance can be misleading. Learn why some of your business cash is already committed and how understanding your available cash can help you make better decisions.

Inika Pieters

What Franchises Understand That Independents Often Miss

Franchises are built to operate beyond the founder. Discover how independent business owners can apply the same principles to create a more valuable, efficient and sellable business.

Inika Pieters

Hire the Expertise, Not the Headcount

Growing businesses often need senior expertise without being able to justify the cost of another full-time salary. Discover how fractional specialists and consultants can provide the skills, experience and guidance you need while keeping overheads under control and profits strong.

Inika Pieters

AI Will Not Save a Business That Has No System

AI can save time and improve decision-making, but it cannot fix a poorly organised business. Strong systems and reliable processes must come first if owners want technology to deliver real results.

Inika Pieters

The Right Time to Sell Is Before You Have To

The best time to sell a business is before you have to. Discover why early preparation, strong financials and reducing owner dependence can help you achieve a better outcome when the right buyer comes along.

Inika Pieters

When Growth Is the Thing That Breaks You

Growth is usually good news, but growing too quickly can put even healthy businesses under pressure. Learn why rapid growth can drain cash, expose weak systems and create problems, and how planning ahead can help your business grow sustainably.

Inika Pieters

The First Five Things a Buyer Looks At

What do buyers look at first when considering a business for sale? Discover five key areas sellers should prepare before putting their business on the market.

Inika Pieters

Why Buyers Pay for Proven Earnings, Not Promises

Buyers pay for what a business has already proven it can earn. Learn why consistent profits, reliable records and sustainable earnings can strengthen your valuation and sale price.

Inika Pieters

Automate the Boring Before You Blame the Team

Repetitive admin can drain your team’s time and limit business growth. Learn how simple automation can reduce routine work, improve productivity, lower costs and free your people to focus on customers and the work that matters.

Inika Pieters

The Quiet Cost of Being the Only One Who Knows How

Many businesses rely heavily on one person who holds critical knowledge. While this may seem efficient, it creates operational risks and can reduce your business's value when it's time to sell. Learn why sharing knowledge and documenting processes can make your business stronger, more resilient, and more attractive to buyers.

Inika Pieters

Your Next Owner Might Already Be on Payroll

The best buyer for your business may already be part of your team. Discover how management buyouts work, why internal buyers often make the smoothest transitions, and how planning ahead can create a successful and profitable exit strategy.

Inika Pieters

Good Debt, Bad Debt, and the Money Sitting Idle

Not all debt is bad. Discover the difference between good debt and bad debt, and learn how smart business funding can help you grow, improve cash flow, and unlock new opportunities for your business.