The social media platform Facebook’s main focus is to allow you to catch up with family, friends and share photos, etc. However, did you know selling your business on Facebook is also a possibility? Yes, it is, and here we will look into 28 Things you should consider When Selling Your Business On Facebook Marketplace.
It is a simple fact that there are so many amazing things to consider when selling something on Facebook Marketplace. However, when it comes to selling your hard earn business there, you should be even extra careful.
But, if you are careful enough, all you need is simply an active Facebook account to sell your business safely there!
Facebook is the most popular and ubiquitous online force, with billions of monthly active users. It signifies a real opportunity for individual sellers and small businesses. If you know what to look at when you sell your business there, you can quickly empower yourself to take this challenge as an adventure.
Facebook is a non-popular platform for selling businesses, although it has more than 2.91 billion active users. Similarly, if we talk about the Facebook Marketplace, it is for all who have things to sell, whether old or new. But, people sell their businesses there too.
Generally speaking, Facebook Marketplace is best for entrepreneurs, e-commerce businesses, handmade artists, real estate, fashion businesses, etc. to sell their products, but you can sell businesses there too.
So, what is a Facebook Marketplace, and how does it work? What are the things to consider while selling your business on Facebook Marketplace? How can small businesses market and advertise on the platform?
Read this comprehensive article to know all about the Facebook Marketplace when it comes to selling your business there.
Let’s start by identifying Facebook Marketplace…
What Is Facebook Marketplace?
Generally speaking, the Facebook Marketplace is a digital marketplace where people can purchase, sell, and trade items or products with other people in their area. In October 2016, Facebook announced the Facebook Marketplace.
Before the Facebook Marketplace, users sold and bought things on Facebook groups. The feature of the Facebook Marketplace works on the same principle but with a difference. It offers the option to list items for sale.
The Facebook Marketplace acts much like Craigslist. It provides a complete shop-like feature connecting people directly with the product or business they want to buy or sell.
The ability to list a small business that can be valued up to $2 million dollars (in Australia), takes the potential of Facebook Marketplace to a whole new level.
To better understand, let’s turn into small businesses now…
What Is A Small Business In Australia? And, What It Meant To Sell It?
Small businesses are indeed an essential part of the Australian economy. There are many definitions of small business in Australia. They can be a sole trader, partnership, Pty Ltd or a trust.
If they meet specific criteria, they come under the small business category in Australia by definition.
A small business commonly has less than 20 people in its team, according to the Australian Bureau of Statistics (ABS). However, the Australian Tax Office (ATO) has a broader view when it comes to the number of employees. Moreover, on all occasions, the business must have less than $10 million in aggregated turnover to be called a small business.
Furthermore, the Australian Securities and Investment Commission (ASIC) considers that small businesses must meet two criteria. They are the broadest view that allows companies with the following criteria to be called a ‘small business’.
- There must be up to 50 employees at the end of the financial year.
- An annual turnover should be less than $25 million.
Now let’s talk about what it means to sell a business.
There are many essential and different things to consider when selling a business. You want to sell because of a lack of resources, wanting to move on to other ventures, financial stressors or due to retirement or health circumstances.
Regardless, the good news is the process of selling a business in Australia is pretty straightforward.
Whatever your business is, you must be familiar with certain things to consider when selling —for instance, preparing to sell a business and setting its price. Then pursuing buyers, preparing a sale contract, and finalizing a deal…etc.
Now, if you consider selling your business through Facebook, the list of things you should consider is even longer.
Let’s dig into them now…
14 Things To Consider When Selling Your Business On Facebook Marketplace
Facebook Marketplace can be a good platform for selling your business, but you must follow their policies. In this way, you can effectively sell your business.
Below are the 14 best things to consider when selling your business on Facebook Marketplace.
1. Business Valuation
A business valuation is the process of determining the worth of your business. Conducting a valuation is an excellent way to assess the potential of your business. You calculate the value by a specified formula taking into account any assets, earnings and debts, profits or losses, etc.
In short, determining your business value will help analyze whether your business will profit by selling it on Facebook Marketplace. At least, whether it is worth considering…
2. Create A Detailed Business Listing
Once you determine the value of your business, the next step is to create a business-for-sale listing.
You can add a catchy title and business description by clicking Create New Listing on Facebook Marketplace. It is better to provide a detailed description with photos of the business you are selling on Facebook Marketplace. However, make sure not to give away too much by displaying actual photos at this stage, just to make sure your privacy is protected. We will touch on this little later…
You can also optimize your Facebook Marketplace listings by looking at other similar opportunities for sale there.
3. Detailed Description
The description is one thing you should get write…
The detailed description of your business tells the buyers what your company does and its purpose. Facebook Marketplace is free and the best place for all small businesses to sell as this place has potential buyers. Hence, you should take creating a detailed description of the business you are selling seriously.
4. High-Quality Photos
Photos are essential for marketplace listings. The photos that are of high quality encourage buyers to purchase your business. Try to capture images in such a way that they look clean, clear, and crisp.
For listing your business, we would encourage you to use stock pictures relevant to your business industry. In that way, no one knows the details of the company you are trying to sell until they contact you.
As noted earlier, the privacy of your company is important just at finding a potential buyer.
5. The Description Must Match The Image
The photos you upload of your business must match the title and description. For example, don’t try to confuse the viewer by adding pictures of cars if your business is a restaurant business. That will just confuse everyone, as your business doesn’t rent or sell cars.
Although the report is unnecessary, adding an honest one to your listing helps you get more offers. Similarly, you can also gain a potential buyer’s trust.
6. Reasonable Realistic Price
Remember, business valuation (noted in above #1) and your listing price shouldn’t be the same. The listing price can be higher than your valuation and should be less, especially if you are in a rush to sell your business.
Before pricing your business, check your competitors’ prices. Make sure that the prices that you set are reasonable. First, compare prices with other sellers and then put an affordable price for your business so it can sell promptly.
Leaving your business for sale for many months or a year in the market can kill your business and its revenue. So, moving fast is important to retail its valuation.
7. Prepare For Detailed Due Diligence
You need to identify the problems before placing your business on Facebook Marketplace.
Due diligence is a process of analyzing information before making a decision. It is simply an audit of a company performed by a serious buyer before purchasing your business.
Therefore, if you are selling your business on Facebook Marketplace, just be honest and never hide anything. Any sophisticated buyer will find out what you hide sooner or later, which will be forced to bring your valuation down or waste resources if you or they decide to walk away.
8. Screening Potential Buyers On Facebook Marketplace
Before selling your business on Facebook Marketplace, please screen potential buyers. If you find the buyer genuine, you can disclose your financials and proceed with selling. However, if the buyer is fake or looks like a scam, you can report that buyer on Facebook Marketplace.
9. Communication From Buyers
You can receive many messages from buyers who want to purchase your business. Moreover, those buyers can also ask different questions. Therefore, it is necessary to master your communication templates for inquiries of customers.
Take your communications seriously, and always be professional and polite. Your professionalism will also add an impression to your business and its value.
Everyone knows that an ‘aggressive junkie’ cannot build a solid, valuable business!
10. Legal Considerations Of Facebook Marketplace
As a business seller on Facebook Marketplace, you must follow their terms and conditions. In addition, as a seller, you must submit the correct information and comply with their policies.
11. Respond To Queries Quickly
One of the best practices of Facebook Marketplace is that the sellers should respond to buyers as soon as possible. Apart from that, they must also resolve any disputes within two days.
A reliable seller will always respond to queries quickly.
A great thing about buying on Facebook Marketplace is that prices are negotiable. Everyone knows that!
You can ask the seller if the price is negotiable or message them with your offer. As a seller, be honest with your buyer. Don’t be offended. Never get aggressive. Remember, you are trying to sell your business, and a potential buyer is trying to work out if they can work out a deal with you. Be thankful they are contacting you!
If you are non-negotiable, it becomes difficult for you to negotiate a fair deal. Remember, the valuation of your business is just a guide. The actual valuation is the amount that a real human is willing to pay you!
Your ultimate goal is to make sure you sell your business before you get nothing for it.
13. Be Patient
If you sell your business related to a high-demand industry, you are likely to sell your business quickly.
On the other hand, if your business is all about niche items or you have overpriced it, it will take longer to sell. Therefore, be patient or wait for the perfect buyer. However, within 60 days of advertising, you should be able to feel the market response to your business and adjust the price quickly before being sorry.
14. FB Platform Limitations & Scam Prevention
Before posting a listing, check the FB platform’s guidance; some businesses need to improve at selling. But you cannot sell your business related to cosmetics (used), tobacco, weapons, animals, etc.
By following the rules, you have a better chance of selling your business at a reasonable price.
15. Security and Privacy Considerations
As touched on earlier, one of the biggest concerns of using online marketplace platforms like Facebook and Gumtree for selling your business is the risk of privacy and security.
Remember, legitimate buyers, as well as scammers, will contact you with vicious intentions, so make sure you review people’s details before giving too much information about you or your business. Make sure to check their social or LinkedIn profiles before telling them about you.
In the shortlisting process, it is a good idea to chat over the phone before going back to online communications. Remember, most scams are likely based overseas and couldn’t answer the Australian number you are calling.
Be careful and mindful!
When Selling Your Small Business On Facebook Is A Bad Idea?
Facebook is an ultimate haven for brands in terms of the potential audience. Unfortunately, it becomes difficult for small business owners to sell their businesses similarly and reach their target customers. Thus, engagement is likely a whole struggle on this platform, although FB is great for affiliate marketers.
Another reason is that Facebook is relatively expensive to advertise now; although you can make a free business page, you can purchase Facebook ads. Those ads will help you get engagements. However, you need to splash out more money to get a broader audience.
Second, you need more dynamic content, for example, a video description of your business for sale. It would be best if you did more than post a photo or status update on Facebook to sell your business. However, to get more audience on Facebook, videos are the only option that can bring significant results.
The third thing is that Facebook has no long-term approach. The Facebook marketing takes a lot of time and resources. Moreover, traffic is only sometimes available, so you have to do a lot of promotions to insist the audience view your business as available for sale.
The more people and companies view your offer; it becomes easy for you to sell your business.
Some other reasons include that you cannot control the platform, and its functionality is also limited.
Apart from that, it gives no seller or buyer protection. Some scammers can target you, so always be aware of with whom you interact on Facebook. Ultimately, that’s the biggest risk of advertising your company on Facebook, in our view.
Saying that, if you follow the tips below effectively, Facebook alone has the potential to sell your business in a breeze.
Tip: Just like trying to sell a house that sold frequently, it would be a trick to sell your business which you bought from someone else only a few months/years ago.
13 Tips For Effectively Selling Your Small Business On Facebook
Facebook can help you sell your small business, find new customers, magnify brand awareness, and nurture customer loyalty.
Now, the question arises: can a small business selling do well on Facebook? Therefore, below are the 13 tips for effectively selling your small business on Facebook.
1. Reach Your Customers
Think first if Facebook is an excellent place to reach your potential business buyer. What are your customers’ social habits? Are they professionals? Are they the companies? Are they equity firms?
In addition, you must know which platforms they use and where they like to follow different brands.
For example, if they like to be professionals, in that case, LinkedIn reach-outs might work better for you. If your business is something simple, let’s say it is a laundromat, then Facebook should do just fine.
2. Compare Your Target Audience
There are different people more active on specific social media platforms. You can compare their demographic and psychographic traits with the social media platforms you are considering.
For example, among millennials, Facebook is the most popular. Among professionals, LinkedIn is the go-to place.
3. Take A Look At Your Competitors
If similar businesses like yours get audience engagement through Facebook, your target audience is on Facebook. After all, your competitors’ customers are your potential customers, so you should sneak into that intel too.
4. Post With A Photo Or Video
Visual content is more appealing for your business as you will get engagement. When you advertise your business, make it a personal rule to post your content with a photo or video. Hence, this will not only come professionally but also helps in selling your business.
There are many ideas to post visual content, like adding photographs of your business or industry, giving charts and infographics of industry stats, etc. Anything that helps your potential buyer to reason will also help you through the hurdle.
5. Run Ads On Facebook
Through Facebook Ad Manager, you can use 25 CTA buttons. Out of them, in this scenario of selling your business, you can connect your Ads to your Facebook Messenger account and prompt people to contact you to discuss their needs with you.
In that way, you get the opportunity to see to whom you are talking before sending out confidential information about your business to them.
6. Join Facebook Marketplace As An Individual
On Facebook Marketplace, you can sell your business as an individual. The personal touch always wins over a cold brand name.
7. Start Selling During Facebook Livestreams
Facebook Livestream can connect your small business to customers in real-time. You can discuss your business and answer questions. Live video has more advantages than messenger chat; however, when it comes to selling your business, we would rather call the inquirer.
8. Use Facebook Posts To Generate Sales
Sometimes selling your business needs a hands-on approach. As a result, you can use Facebook organic posts to generate a sale. According to the study of HubSpot, social media other than outbound marketing has a 100% higher lead-to-close rate.
This is an advanced strategy that can be ‘risky’ for businesses in some industries. Your social media marketer should be able to advise if it is the right way forward when it comes to selling your business.
Remember, selling your business is strategically very different from selling your products or services.
9. Don’t Forget The Headlines
A great way to capture and get the attention of your target audience is through headlines. Therefore, remember the headline of your Ad as the first step in selling your business or in a sales process.
10. Frequent Posting
If you want to sell your business, you want to reach new people consistently. Furthermore, it would be best if you established your business as a reliable brand so that it can sell quickly. Hence, for this purpose, you must use a content calendar to plan your content strategy and post frequently.
Your business social media accounts should be active, especially during the period when your business is available for sale. Your customer reviews, and social media engagement have value and are something your future company owner is looking at!
You can check when your audience is on Facebook through Facebook insights tools. Similarly, you can see additional metrics showing which of your posts are performing the best.
Maintaining the trust of your company and its brands is very important during the business sales process!
11. Promotion On Other Social Media Channels
Social media channels like Twitter, Instagram, and WhatsApp to promote your small business would be great too. The specials you post can link easily to the landing page on your Facebook business page.
Just like that, keep being active on social media as you try to sell your business!
12. Provide Special Exclusive Offers
Everyone likes to feel special, and people on Facebook like a retail brand mainly because they get a good deal. It would be best to offer discounts while selling your business to Facebook fans to increase engagement and influence the algorithm.
Remember, ultimately, your former and current revenue and the future forecast will determine the ultimate value of your business, so you should try to boost it at this crucial point of your business exit.
13. Solicit Feedback From Customers
The fans provide a great resource in helping you improve your Facebook presence. Collecting excellent and positive reviews will help build your business’s social reputation.
The buyers can make an informed decision about whether they should buy your business based on your reputation and reviews.
Cost Of Advertising Your Small Business For Sale On Facebook
Any entrepreneur can use Facebook Ads to scale their business and land customers. It is a fact that more than 1.6 billion people worldwide on Facebook pages connect themselves to small businesses. But the question here arises what will be the cost of advertising your small business for sale on Facebook?
The cost depends on two factors. First is the overall amount spent, and the second is the cost of each result. You can easily control the overall amount spent through your budget. Similarly, by the bid strategy, you can control the price you will get.
This year, Facebook Ads’ average cost is $0.94 per click. It is also $12.07 per 1000 impressions. However, the cost can vary due to industry, campaign objectives, and other factors like cost-per-click (CPC) or cost-per-thousand-impressions (CPM). Hence, these are the bidding models.
Facebook Marketplace is excellent, where you can efficiently sell your business in most cases. It is free to use and much easier to set up as Facebook has a massive audience. You can find many people who can potentially buy your business through the platform.
When you advertise your business for sale, you must put some love into your Facebook listings by providing honest descriptions with high-quality photos, ideally with a video. You should also respond to customer queries promptly.
If you want to sell your business, you can quickly meet your goals through Facebook Marketplace. Indeed, it is one of the worthwhile investments for any business as you can reach genuine buyers.
Facebook Marketplace has immense popularity due to its personalized customer experience. To sell your business online, Facebook Marketplace is a quite convenient gem method too.
Now it’s your turn to use this compelling platform and share your experience with us!