Despite our current challenging economic situation, the present moment is full of opportunity for buying a business and thriving. If you've been thinking of owning your own business you probably have already looked around for a business for sale, but are unsure about where to invest your hard-earned cash, consider that some of the smaller or medium-sized businesses are affordable, easier to manage and good value for money in an ever-shifting economy.

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Increased domestic demand in the second quarter allowed the South African economy to bounce back a bit. Further good news is that international ratings agency Moody’s hinted at a “low likelihood” that they will downgrade South Africa’s credit rating to junk status in their November review. In addition, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) announced it will keep the repurchase rate unchanged at 6.50%, after having cut rates by 25 basis points previously, adding more stability. In his latest economic talk, President Ramaphosa announced priority reforms to improve the ease of doing business and reducing the cost of compliance. These new laws will reduce the abuse of dominance and high concentration that keeps small and emerging companies out of the economy.

Given that entrepreneurs and small businesses are currently being tasked with the responsibility of reviving the economy and creating millions of new jobs, the government is focusing on improving the entrepreneurial ecosystem, ensuring an enabling environment for businesses to grow and thrive in South Africa. 

Small, micro and medium enterprises (SMMEs) not only provide an attractive opportunity for the country’s economic growth but they also contribute 60-80% of the projected GDP increase, and generate a large percentage of the new jobs in our country.

Statistics provided by Stats SA show that a significant contribution SMMEs have been made by SMMEs across all industries – Business services, Trade, Community and Social, Construction, Transport, Manufacturing, Mining, Utilities.  

Consumer and technology trends this year have shown that from new locally-made consumer lines to online comparison and buying stores, the passion to keep doing business is anything but subsiding. Forget start-ups, buy an existing business. It's less risky and comes with cash flow, experienced staff, working systems, existing infrastructure, and an established brand in the market. 

The term "room for improvement" is the secret to buying an existing business. There are always opportunities to improve product offerings, cut costs, advance technology, add more experienced staff and increase marketing drives. One of the biggest advantages is that the groundwork for getting the business up and running has already been done by the previous owner. Start-up issues will have already been addressed and rectified. If you're looking at obtaining finance for improvement, a proven track record will stand you in good stead.   

So you have decided to sell your Business for 1 or more reasons - it could be because you have decided to relocate or emigrate; you may want to cash in after many years of hard work and retire; or you may have decided to move into a new venture.

Once you have made your decision to sell, you need to decide on the method you will employ to ensure a successful sale. You only have 2 options to decide on - 1) Employ the services of a Business Broker or 2) Sell your Business yourself.

Having sold my own Businesses privately in the past, and having owned my own Business Brokerage and sold Businesses on behalf of clients, I am qualified to give an overview of the pros and cons of both methods.

Selling through a Business Broker: - A qualified Broker can assist you with establishing the correct price for your Business in order to ensure a successful sale. - Allows you the time to concentrate on running your business and preventing the possible decline of turnover and profits. - A qualified Broker knows the most effective process to use from marketing your business, screening and qualifying leads, and negotiating the sale with an interested buyer. - The Broker has the necessary documents to qualify potential buyers, and conclude a sale. - Brokers usually charge a commission of 10% on the sales price of the Business. This could amount to a huge amount of money coming out of your pocket! You need to decide whether you are prepared to give away 10% of the selling price of your business! - If a Broker in a Brokerage needs to meet his target, or is short of personal funds, he or she may push you to accept a lower offer for your Business to satisfy his/her needs.

Selling your Business privately: - You know your Business better than anyone. You are the best person to answer questions on your business. You also know the industry and can suggest ways of improving turnover and profits. You may also be able to point out future opportunities in the industry. - You can save on the 10% commission charged by Brokers. The extra 10% could amount to a substantial amount of money, and will come in very handy with your future plans! Conclusion: - The reason why most sellers do not sell privately is because they actually don't know how! - They don't know how best to market their Business for sale, how to qualify the potential buyers, what steps to follow, and what documents are needed. They also know that they will need to spend an unknown amount of money to have the agreement drawn up by an Attorney.

What if there was another option? - You get a step by step guide to selling your Business; - Your Business is advertised on a premium targeted site; - You receive all leads yourself; - You get all documentation to conclude the sale; - You get access to telephonic support and advice from a qualified Business Broker; - You pay 0% commission!   Biz2Sell have a choice of advertising packages for sellers of Businesses. Biz2sell have also developed a unique option for business owners who want to sell their Business privately and not pay a huge commission. ( Platinum Package.) Biz2 Sell does not charge any commission on Businesses sold through our Premium advertising platform.

To learn more about us and to see our affordable packages please visit http://www.biz2sell.co.za