Putting a business up for sale starts with creating a listing that gives potential buyers enough information to understand the opportunity and decide whether they want to make an enquiry.
For many New Zealand business owners, a specialist business-for-sale website is one of the simplest ways to put the opportunity in front of people who are actively looking to buy a business.
Listing a business is relatively straightforward: choose where to list, gather the key information, create the advertisement, add good photographs, set the asking price, publish the listing and then manage buyer enquiries.
This page explains that listing process. It is about putting a business on the market, rather than providing a complete guide to selling a business.
The Simple Business Listing Process
1. Decide Where to List Your Business
The first decision is where potential buyers will find your business.
A business can be offered for sale privately, through a business broker, directly to potential buyers, or through a specialist online business-for-sale marketplace. These approaches can also be combined.
For an online listing, consider whether the website:
- Specialises in businesses for sale
- Attracts active business buyers
- Allows buyers to search by location, industry and price
- Provides a clear way for buyers to make contact
- Has a substantial range of current listings
- Provides useful information and tools for sellers
The important point is simple: a listing only works if the right potential buyers can find it.
NZBizBuySell provides an online marketplace specifically for New Zealand businesses for sale, allowing buyers to search and contact sellers or brokers about listed opportunities.
If you are considering a broker rather than listing privately, see how to find a business broker.
2. Gather the Information for Your Listing
Before creating the advertisement, assemble the basic information a buyer is likely to want.
A useful business-for-sale listing will normally include some combination of:
- Business type and industry
- Location or general area
- What the business does
- Key products or services
- Years established, where relevant
- Reason for sale, where appropriate
- Asking price or price indication
- Revenue or earnings information where appropriate
- Premises and lease information where relevant
- Staffing information
- Assets included in the sale
- Key features or advantages
- Future opportunities
- Contact details or the preferred enquiry method
You do not need to put every piece of business information into the public advertisement.
The listing's job is to generate informed interest. More detailed financial and commercial information can be provided later to appropriate prospective buyers.
3. Decide What Information to Make Public
Confidentiality matters when listing an existing business.
Some owners are comfortable identifying the business publicly. Others prefer to keep the business name, exact location or other identifying information confidential until a prospective buyer has been qualified.
Before publishing, decide which information should be public and which should only be released to serious prospective buyers.
Think particularly about information involving:
- Business identity
- Exact location
- Customers
- Employees
- Suppliers
- Financial details
- Commercial contracts
- Proprietary systems or intellectual property
For a broader discussion of confidentiality when selling, see don't tell anyone, but I'm selling my business.
4. Write the Business-for-Sale Advertisement
The advertisement needs to answer the buyer's first questions quickly.
A good listing should make it clear:
- What is the business?
- Where is it?
- What does it sell or provide?
- What makes it interesting?
- What is the asking price?
- What type of buyer might suit it?
- How can the buyer find out more?
Start with the most interesting facts rather than a long introduction.
For example, instead of simply writing:
"Established retail business for sale in Auckland."
explain what makes the opportunity worth investigating:
"Established specialist retail business with a strong local customer base, experienced staff and a well-positioned Auckland location. Owner-operated with scope for a new owner to develop existing opportunities."
The second version gives a prospective buyer a reason to continue reading.
Keep the wording factual. Avoid claims that cannot be supported and don't overstate future potential.
Profile your buyer: What will they be most interested in, then curate your listing to best reach this group.
For more detailed advice about writing the advertisement itself, see how to write a better business for sale ad.
5. Choose the Right Photographs
Photographs are an important part of an online business listing.
Use images that are emotive and help a prospective buyer understand what they are considering.
Depending on the business, useful images might include:
- Premises and location
- Shopfront or exterior
- Interior with people
- Products
- Equipment
- Work areas
- Vehicles
- Outdoor areas
- Branding or signage, where confidentiality allows
Use clear, recent photographs and avoid cluttered or poorly lit images. Learn how to create great ad images for selling your busines
For a business where confidentiality is important, photographs should not inadvertently reveal the business name, address, customer information or other identifying details before you are ready to disclose them.
6. Include a Realistic Asking Price
The asking price is one of the first things a buyer will consider when browsing business listings.
Depending on the circumstances, a listing may show a specific asking price, a price range or an indication such as "Offers Over".
Whatever approach is used, the price needs to be credible in relation to the business and the market.
This page is not a guide to valuing a business. For detailed information about business valuation, see valuing a business for sale.
7. Select the Right Listing Category
Online buyers often search by industry, location and price, so selecting the most appropriate category and location is important.
Think about how a buyer would search for your business.
For example, a business might be described as:
- Cafe or restaurant
- Retail
- Tourism
- Manufacturing
- Trades
- Professional services
- Hospitality
- Transport
- Health and fitness
- Online or e-commerce
If the business fits several categories, choose the description that most accurately reflects what a buyer is actually purchasing.
8. Review the Listing Before Publishing
Before pressing publish, read the advertisement from a buyer's perspective.
Check:
- Is the business description clear?
- Is the asking price correct?
- Is the location accurate?
- Are the key features easy to find?
- Are the photographs suitable?
- Are the financial figures accurate?
- Have any confidential details been disclosed accidentally?
- Is the enquiry method working?
- Are there spelling or factual errors?
A few minutes checking the listing can prevent avoidable mistakes once it is live.
9. Publish the Listing
Once the information, photographs and price have been checked, publish the business-for-sale listing.
On a specialist business-for-sale marketplace, the listing becomes part of a searchable collection of businesses that potential buyers can browse by different criteria.
The objective at this stage is simple: make it easy for an interested buyer to recognise the opportunity and make an enquiry.
To list a New Zealand business on NZBizBuySell, see list your business for sale
10. Manage Buyer Enquiries
Listing the business is not the end of the listing process.
Once the advertisement is live, prospective buyers may ask questions or request additional information.
Keep track of enquiries and respond promptly. Where appropriate, establish enough information about the prospective buyer before providing confidential business information.
The listing itself should remain the public introduction to the opportunity. More detailed discussions can then move into the appropriate sales process.
For the next stages after an interested buyer comes forward, see the business sales process.
11. Keep the Listing Current
Business listings can lose effectiveness if the information becomes outdated.
Review the listing regularly and update it when something material changes, such as:
- Asking price
- Business location
- Lease arrangements
- Trading circumstances
- Assets included
- Contact details
- Photographs
- Important features of the opportunity
If the business is sold, withdrawn or no longer available, the listing needs to be updated or removed promptly.
What Makes a Business Listing Stand Out?
Buyers browsing online may look at many businesses before deciding which ones deserve further investigation.
The strongest listings tend to make the opportunity easy to understand.
| Weak listing | Stronger listing |
|---|---|
| Vague description | Clearly explains what the business does |
| Few or poor photographs | Clear, relevant and recent images |
| No indication of price | Clear price or appropriate price indication |
| Long list of features | Features explained in terms of buyer appeal |
| Unclear location | Useful location information without compromising confidentiality |
| Unsupported claims | Specific, factual and credible information |
| No obvious next step | Clear way for an interested buyer to enquire |
Should You List Privately or Use a Business Broker?
There are two broad approaches:
Private listing: You create and manage the listing and deal directly with prospective buyers.
Business broker: The broker manages some or all of the listing, buyer contact and sales process on your behalf.
Neither approach is automatically right for every business. The choice depends on the business, your circumstances, the level of confidentiality required and how much of the sales process you want to manage yourself.
If you are considering a broker, see how to find a top business broker.
Listing a Business for Sale: The Short Version
If you simply want the checklist, the process is:
- Choose where to list the business.
- Gather the key business information.
- Decide what information can be publicly disclosed.
- Write a clear and factual advertisement.
- Select good photographs.
- Set and display an appropriate asking price.
- Choose the correct category and location.
- Check the listing carefully.
- Publish it.
- Respond to and qualify enquiries.
- Keep the listing accurate and current.
That's the listing process. The process of actually selling the business - including offers, negotiation, due diligence, contracts and settlement - is a separate stage.
For that, see the business sales process.
Useful Tips
Have a plan. Prepare and package your business for sale. Put your best foot forward. Get your books in order and ensure your business looks sharp, desirable and well poised for the future. A target your advertising using the key listing sites. In today's market you may require a multi-pronged marketing approach in order to draw out your best prospects. Develop a sharp and persuasive Information Memorandum to send out to vetted potential buyers.
Being business sale ready well before you go to market will ensure you are in your best position to sell and maximize the value of your business. The more you prepared you are, the more successful the outcome is likely to be.