The best places to sell your small business in Australia depend on many factors. When selling a small business, many options are available in Australia. Of course, the best marketplace depends on what you are selling and who are your target audience.
Setting up a business is difficult, as it takes a lot of effort and struggle. Similarly, selling a business is a complicated procedure too, both logistically and emotionally. Whether you are selling on online marketplaces or through traditional business brokers, you must consider the nature of the business and many other factors in planning the sale.
This detailed article will overview the 18 best places to sell your small business in Australia. But before that, we will discuss what is a small business, the common reasons to sell a small business. Further, we will discuss the potential benefits and how to sell a small business in Australia for a maximised outcome.
All the details here will help you to make an informed decision on where to list your small business for sale in Australia.
So, let’s explore together…
What Is A Small Business In Australia?
Small businesses are a huge part and critical contributor to the Australian economy. These businesses are responsible for creating jobs and driving innovation. If we talk about the local level, they are essential for families and communities.
A small business usually has less than 20 employees. This definition of small business is according to the Australian Bureau of Statistics (ABS). It includes non-employing businesses that have sole traders (self-employed owner-managers) and partnerships with no employees.
Similarly, it includes micro-businesses with 1-4 people and other categories that employ 5-19 staff.
The Australian Tax Office (ATO) has a different view, and they consider a small business that includes either a sole trader, partnership, company, or trust. Accordingly, the small business must have less than $10 million in aggregated turnover.
5 Common Reasons To Sell A Small Business
Every day, countless business entrepreneurs ask themselves, “Why and when should I sell my business”? However, the decision to sell a small business is not easy, as the owner has to make a lot of effort.
It would help if you reaped the full benefits of owning a business as a business owner, before selling. It is a harsh reality that many small-business owners start their companies without a proper scaling strategy, and then a clear exit strategy. Hence, they end up selling it forcefully, for a relatively ‘cheap’ sum.
Selling a small business should be a positive choice to give you professional and financial advantages.
Below are the five common reasons why owners decide to sell a small business in Australia.
1. Small Business Momentum
The best time to sell a small business is when the business is doing well, and this is a counterintuitive feeling. When the company is profitable, you can get the most money. The industry is trending up, and the owner is near retirement age, so they are selling their business.
The reason for selling is that they know the buyers want to buy a business
that has a promising future. On the contrary, if the owner is not retiring, they can still sell the company and secure their future financially.
2. Owner Burnout
Operating a small business is a challenging thing. It is incredibly demanding to own and manage a business, both physically and emotionally. The lack of motivation can impact the business. Therefore, selling your business before you fall prey to burnout is a good idea.
Selling a business can help you recover from stress-related burnout. But if you are unwilling to market your business, there are many ways to maintain ownership. For instance, seeking family and friends’ support, delegating tasks to others, partnership etc.
Eventually, small business owners choose to enter retirement. Selling a business is better as it can finance your retirement plans. Hence, by taking this decision, you can pay off your mortgage, start another business, move to a new location, etc.
You must also ensure you get enough profit from the business sale to fund these plans.
4. New Interest Or Expand Professionally
Entrepreneurs devote their time and energy to their businesses. But, after some time, they want to do another different thing. And, selling a business gives them this opportunity. They can start another company or work for an employer for a change, etc.
5. Fear Of Risks
When you become risk averse, it is time to sell the business. It is one of the most common but complex signs to identify. As a business owner, you are less willing to make risky decisions. Thus, it becomes detrimental to your business growth and profit.
Consider transferring this business risk to someone else. You must take the case and move on to some other thing that is less risky.
Advantages Of Selling A Small Business In Australia
When you want to sell your small business, you may be wondering what its advantages are. After all, you have made so much effort and struggled to build a business, so why are you selling your business?
There are many advantages to selling a small business in Australia. Here are just a few of the benefits that we will discuss below.
- Selling your small business in Australia allows you to pursue another project. For instance, you can find work with an employer or invest in another company.
- If you are facing financial difficulties or the business is declining, you can get a way out by selling the business.
- Business selling allows you to take a break and improve your lifestyle. Hence, you can use the money to take up any new hobbies, travel or spend time with family and friends.
- The profit you will get by selling your business allows you to pay off any personal debts.
- After selling, if you want your business to thrive, then you can sell it to a strategic buyer. Thus, the other company in your industry helps you to grow your business even further.
- In Australia, selling small businesses is fast and easy as they have appropriately streamlined procedures. Therefore, it saves the owner time and money in the long run.
- Potential buyers always look for good investment opportunities as there is an increasing demand for small businesses in Australia. In short, any promising small businesses will sell quickly and for good money, while some, like restaurant businesses, may struggle a bit.
- The Australian economy is strong and stable. It also provides a positive environment for selling small businesses.
- Business brokers provide valuable assistance in the sales process as they identify potential buyers and negotiate deals with them smoothly.
- The small business market is competitive in Australia. So, the valuations are reflective of the business’s actual value. As a result, sellers receive fair compensation for their effort and investment in their business.
18 Best Places To Sell Your Small Business In Australia
Today, hundreds of places and platforms exist to sell your small business in Australia. But you don’t have to check them all by yourself. We gathered all the best places just for you here!
Remember, success also depends on if the online selling marketplaces are trustworthy. Apart from that, all these platforms should be familiar to buyers.
The 18 best places you can post or advertise your small business available for sale in Australia are the following.
1. Online Business-For-Sale Marketplaces
Australia has many online marketplaces where you can sell your small business quickly. Some online marketplaces catering to small businesses include Any Business, BizBuySell.com.au, Flippa.com (sells affiliate websites), BusinessesForSale.com.au, and Gumtree.com.au.
These sites not only allow you to list your small business for sale, but they can help you in finding potential buyers. Such reputable online platforms can help entrepreneurs to sell their businesses. They accept business listings allowing companies to sell at varying price points.
2. Business Brokers
Business brokers are those experienced professionals who help people buy and sell large or small businesses. You can easily advertise your small business through them. They can provide guidance as well as assistance in valuing the company.
Moreover, they can help you find potential buyers and also assist you in negotiating the deal. A broker’s responsibility is to ensure you have the best possible experience throughout the sale process.
3. Accountants And Lawyers
Successfully selling your small business requires an expert team of accountants and lawyers. These professionals help you to get the highest value for your business as they effectively negotiate the sale.
However, at a minimum, accountants and lawyers can also be your tax and risk advisors. They can also post about your business on their websites and direct potential buyers for your business.
4. Industry Associations
Deciding to sell a small business has always been challenging. There are many online marketplaces matching buyers and sellers. Similarly, you can also list your business for sale in industry groups.
Your state and local community have many associations for professionals in your industry. Try to learn the names of different industry associations and get their membership. Through these associations, you can reach a range of potential buyers.
5. Significant Networking Connections Or Groups
Extensive networking connections and groups can be valuable assets when selling a business. They can help enterprises to reach potential buyers and increase the chances of getting suitable offers.
Networking also serves as an essential avenue to create long-term relationships with mutual benefits. It can raise your business profile and establish new opportunities. You can post about selling your business in different online groups and forums.
6. Social Media
Social Media is the best; you can reach potential clients through Facebook, Twitter, Instagram, and LinkedIn. In addition, you can promote your business for sale in social media too. As these platforms provide valuable resources, thus, you can use them to generate interest in your small business.
7. Local Business Directories
Local business directories are one of the best tools for selling a business. It is a website that features listings for companies in a particular niche. By listing a business on these directories’ sellers can ensure they can reach a wider audience.
The process of reaching an audience is less time-consuming. Moreover, these directories provide increased visibility.
8. Word-Of-Mouth Referrals
If your business is well-known and you, as the owner, is well-known, word-of-mouth referrals are best for you. They are enough to spread the news when you list your small business for sale. Spread your intention to sell the company among acquaintances, friends, and business contacts.
9. Newspapers And Classifieds
Many people consider newspapers and classifieds as trustworthy sources of information. Advertising your business in both of them for selling is a cheaper source than other forms of advertisements. Thus, by leveraging these media, one can help you sell your business efficiently.
10. Business Expos And Trade Shows
Business expos and trade shows provide the best opportunity for business owners to sell their companies. These events increase exposure, build new relationships, and ultimately sell the business.
11. Local Chamber Of Commerce
The local chamber of commerce can play a vital role in selling a business. Likewise, it can provide advertising and marketing opportunities for your business. For instance, they usually publish feature stories, promotional articles and member directories. All these things help in attracting potential buyers.
12. Direct Mail And Email Marketing
Direct mail and email marketing play an essential role in selling a business. Consider a direct mail campaign targeted to a list of business owners, as it can help you stand out from competitors. You can send newsletters and other marketing materials to potential buyers through email marketing.
13. Auction Websites
If your small business is all about tangible assets like equipment or inventory, then auction websites are the best for you to advertise. Thus, you can list your business on sites like eBay.com.au, etc.
14. Your Website
Selling your small business can be nerve-wracking. The transfer process needs a lot of time and resources. Update your website with a “business for sale” page. It should include details about your business and instructions on how to get in touch.
Your website will act as a platform to educate people about your business. Hence, it is one of the best places to sell your small business.
However, this strategy fits best when selling a digital business, such as affiliate marketing sites. This approach is a ‘risky’ one if you want to sell a brick-and-water business or a store.
15. Local Community Newspapers
Small-business owners use traditional advertising to increase brand recognition or sell their businesses. You can publish an Ad in newsletters or local community newspapers. However, their distribution is wide if your business location is in that area.
Local community newspapers also give owners a wide range of advertising options that can fit their budgets.
16. Google Ads
Some potential buyers are searching for a business for sale in a particular niche. By using Google Ads, you can target those audiences as it helps sell your business.
The targeted advertisements will appear across Google search and the Google Display Network. It is a worldwide network of millions of websites; however, the platform allows you to restrict displaying Ads only to your targeted locality.
17. Flyers And Posters
You can distribute the flyers and posters at local businesses, community centers, and supermarkets. Flying marketing is one of the most inexpensive and effective business sale strategies; however, if that you get it right. In other words, If you get them right, it can help sell your small business. Otherwise, it can help you destroy your business too, so be mindful!
Flyers and posters can have a much more welcoming approach as they are cost-effective and reach a maximum number of people.
18. Industry-Specific Publications
Consider advertising about selling your small business in industry-specific publications. Most importantly, it must cater to your business niche.
Business owners should subscribe to at least one industry-specific publication or business journal newspaper. It will help them in selling their company as well as they can stay connected with the business community.
Many options exist for business owners who want to sell their small businesses in Australia. The best places to sell a business include online marketplaces, brokers, newspapers, journals, industry-specific business marketplaces, etc.
Small business owners must choose a method that suits their business industry, needs and budget. When selecting the best place to sell a small business, there are some factors to consider. Like the nature and size of the company. Similarly, the target audience and the desired but realistic sale price will play keys to your sale’s success.
Ultimately, it is good if the business owner seeks advice from professional people or business brokers. In that case, a smooth transition is also possible for both the buyer and seller. In short, it will ensure a successful sale.
Thanks for reading!