Your time is your most valuable commodity. The simple fact of the matter is that many are not truly buyers. In contrast, they are often window shopping or acting out a fantasy of buying a business. In other cases, they would only plan to buy if they were to find the deal of the century.
”
The last thing you want to do is waste your time trying to work out deals with people who aren
’
t serious or qualified buyers.
The Plus and Minus System
The best way to find a serious buyer is to use a
“
plus and minus
”
system. This system will help you weed out the window-shoppers from buyers that are truly worth your time. First, let
’
s evaluate factors for which you
’
ll want to deduct points. If a buyer needed outside financing, then subtract 4 points. Likewise, if a buyer has been looking for 6 months or more, you
’
ll want to also subtract 4 points. If a buyer has no cash available, you should subtract 3 points. Additionally, if a buyer is currently working in the corporate world, you should also subtract 3 points. These are the 4 largest reasons to subtract points, but they are not the only reasons. Below are a few reasons to subtract 2 or 1 points from a buyer
’
s rating.
- You learn the spouse is not supportive – Subtract 2
- Prospective buyer uses a legal pad or clipboard and takes copious notes – Subtract 2
- The buyer indicates that they are in “no rush” and want to find the perfect business – Subtract 2
- The buyer is under the age of 25 or over the age of 62 – Subtract 1
- The buyer is currently renting even though he or she has lived in the area for some time – Subtract 1
Factors to Add Points In
There are also many factors that would make a buyer fall onto the
“
plus
”
side. If the prospective buyer does not currently have a job or has just resigned from their job, then add 3 points. Likewise, if a prospective buyer acknowledges that books and records are not the only metrics by which to judge a business, add 3 points. Add 2 points if a buyer has enough money to buy the business and another 2 points if the buyer currently has no dependents. If a close relative or family member currently owns or has owned a business in the past, then add 2 points. If the buyer is between the ages of 25 and 62 add 1 point. If he or she is a skilled worker or professional, add 1 point. Finally, if the buyer does not consider location to be a prime consideration, add 1 point. This streamline, straightforward and relatively simple system does work. Use this system consistently, and you will quickly eliminate a large percentage of window shoppers. While no system is perfect, this
“
plus-minus
”
system for accessing prospective buyers will save you countless hours and many potential headaches.
Copyright: Business Brokerage Press, Inc.
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Maximizing Your Time by Rating Buyer Seriousness
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