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Marketing Budgets For Selling Your Business

Garry Stephensen

Article Author: Garry Stephensen
Position: Managing Director
Read time: 5 mins

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Finding the right buyer for your venture is crucial for achieving the best possible sale. To enhance your chances within Australia, a robust marketing program that targets the Australian market as well as the US and Chinese markets is a wise investment. The wider the outreach, the more potential buyers will consider your business, ultimately driving up demand and increasing its value. 

As seen in the Financial Review and the Courier Mail.

Exposure Through Marketing

In the Australian business market, relying solely on traditional advertising methods may not suffice. It is essential to go beyond internet and newspaper ads, considering the specialized nature of businesses. Successful marketing agents, dealing with large commercial or up-market residential properties, often allocate a marketing budget equivalent to half of 1% to 1% of the selling price. So for a $10 million target price, expect to spend between $50,000 - $100,000 on marketing initiatives. For businesses in niche industries, given their uniqueness and the challenge of finding the perfect buyer, a more substantial advertising budget is often necessary to secure a sale.

Four Advanced Marketing Methods

Today, sophisticated and proven methods exist to expose your business for sale to the most suitable prospects. Experienced business brokers recognize four fundamental marketing methods to maximize exposure:

  1. Direct mail of letters
  2. Database marketing
  3. Exposure through press releases in targeted publications
  4. Optimized digital marketing

Each category includes sub-sections aimed at optimizing market exposure, ensuring your business reaches the right audience through diverse channels.


Marketing Strategies & Budgeting for Selling Your Aussie Business


Underestimating Advertising Budgets


Avoid the common trap of attempting to save on advertising costs. In our experience, it costs the seller more overall when they do not spend on advertising. Instead, allocate an appropriate budget to market your business effectively. While some business owners may opt for a gradual approach, investing in a few larger-sized ads can create more attention, generate greater responses, and attract qualified buyers in a shorter period.

In many Australian small business sectors, the market is often overwhelmed with businesses for sale than it has buyers for these businesses. Hence, standing out from the crowd becomes imperative. Strategic and prominent marketing of your business for sale is vital, and every successful business broker would attest that a well-planned marketing campaign significantly expedites the sales process, contributing to a successful sale at maximum value.

Creating Demand

The value of any asset, including a business, is determined by the principles of supply and demand. By developing a comprehensive marketing program, you can actively create additional demand for your business.  Press releases and digital marketing can whip up a 'frenzy' of buyer competition.  An effective marketing strategy not only attracts potential buyers but also gives you control over the sales process. Instead of feeling like you're inviting buyers to acquire your business, the right marketing approach will have them approaching you, eager to make the purchase.

Announcing Your Business for Sale

Regardless of the method chosen, it is crucial that potential buyers are made aware that your business is on the market. Keeping your intention to sell a secret is counterproductive.  Creating awareness of a business for sale through a press release is a strategic and effective way to reach a wide audience and generate interest among potential buyers. A well-crafted press release serves as a powerful tool to communicate key information about the business, its strengths, and the reasons behind the sale.

Here's a breakdown of how to leverage a press release for this purpose: 

  1. Crafting Compelling Content: Begin by carefully constructing the content of the press release. Start with a concise yet attention-grabbing headline that conveys the essence of the news – the fact that the business is for sale. The opening paragraph should provide a brief overview of the business, its achievements, and its unique selling points. Include essential details such as the industry it operates in, its market position, and any notable milestones. 

  2. Highlighting Positive Aspects: Emphasize the positive aspects of the business to create a favorable impression among potential buyers. Showcase its profitability, growth potential, loyal customer base, or any unique features that set it apart from competitors. Use language that exudes confidence and optimism about the business's future prospects, encouraging prospective buyers to envision themselves as the new owners.

  3. Including Relevant Details: In the body of the press release, provide specific details about the sale, such as the reason behind it, the asking price, and any favorable terms. Be transparent about the transition process, including the potential for retaining key employees or existing contracts. Including these details helps build trust and provides interested parties with the necessary information to make informed inquiries. 

  4. Distribution to Relevant Channels: Once the press release is finalized, distribute it through reputable and relevant channels. This may include industry-specific publications, local newspapers, online business platforms, and press release distribution services. Tailor the release to suit the preferences of each channel, ensuring that the message reaches the target audience effectively. 

  5. Leveraging Online Platforms: In today's digital age, consider posting the press release on the company's website, social media platforms, and relevant online forums. This enhances the reach and accessibility of the information, allowing potential buyers to discover the opportunity through various online channels. 

 

Business Broker - Garry Stephensen

Garry
Managing Director
Business Broker - Karen Dado

Karen
Director NSW
Business Broker - Geoffrey Tulett

Geoffrey
Lloyds Corporate Partner - Mergers & Acquisition Specialist
Business Broker - Edward Alder

Edward
Director Victoria
Business Broker - Kevin L Sutherland

Kevin
Director International Business Sales
Business Broker - Dianne Reynolds

Dianne
Research Director and Corporate Broker

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