Selling a small business in the UK isn’t like selling a house. There’s no universal database where you list your small business, sell it, and then wash your hands of it. It usually means exploring a range of channels to ensure you get maximum exposure and the best possible price.
Let’s explore where you can advertise your small business for sale and gain access to genuinely interested buyers.
What classes as a small business when planning to sell?
Small businesses make up the vast majority of the UK’s business population, as they do in practically every country. Today, over 99% of businesses would fall under this classification, and only around one in five Brits knows this.
What defines a small business is the number of people it hires, its turnover, and its balance sheet. According to the UK government, small businesses have between 10 and 49 full-time employees, while micro-businesses have fewer than 10. Furthermore, a small business won’t have more than £15 million in annual turnover and no more than £7.5 million on the balance sheet.
It’s a broad definition and a high bar, which is why even massively successful companies are often still classified as “small” if we’re going by a dictionary definition.
Where is the best place to advertise a small business for sale?
Advertising a small business for sale means casting your net as widely as possible. The business sales community sector is largely fragmented, meaning that unless you get lucky, you’ll be relying on multiple channels to generate interest.
The top places to advertise a small company for sale include:
- Business Marketplaces – Dedicated business marketplaces, like Cogogo, come readily equipped with an interested audience and a broad reach under a known brand.
- Business Brokers – Some entrepreneurs may outsource the problem to a dedicated business broker, who will tap into their private networks to make a deal. You will then pay a portion of the proceeds or a flat fee to cover their services.
- Private Networks – Most lucrative business deals take place via private networks, meaning you’ll never see these firms come onto the market. It’s why your initial port of call will often be to put out a call to your own private business contacts.
- Online Marketing – If you’ve got the budget, you may turn to traditional marketing to generate interest, including social media or paid advertising on search engines like Google.
- Business Events – Some trade shows or conferences might present opportunities to advertise a small firm for sale. However, these tend to be very hit-and-miss.
What’s vital to mention is that what works for someone else may not necessarily work for you. Just because someone you know got a great deal at a particular trade show doesn’t mean the same thing will happen to you. That’s why it’s crucial to keep an open mind and take advantage of multiple options to increase your chances of a successful sale.
Check out our selling business faqs.
Using the right platform to market your small business for sale
Marketing a small business for sale is like marketing any other product or service. The same principles apply to finding your target audience and pushing the unique selling points of your company.
But what makes a suitable platform for your company?
- Reach – How much reach does a particular platform have?
- Audience – Is the audience on that platform likely to be interested in your type of business?
- Paid Advertising – Are paid advertising options available, and are you willing to spend to gain visibility?
- Trust – Is this a trustworthy platform where you can rely on finding genuine buyers rather than time-wasters?
- Support – Does the platform provide any support for small business sellers?
This is where you have to do your research in advance. The last thing you want is to be working on a platform where you get no interest or, even worse, you end up fielding enquiries from people who are not genuine.
What to include when listing a small business for sale
Listing a small business for sale is your chance to market the advantages of your business and demonstrate that it’s an operation worth considering. Generally, somebody looking to buy a business wants to see the headline figures and an insight into what they’re buying, rather than flowery language.
Here’s a breakdown of what you should include in your listing:
- Your business name, sector, and location.
- Deal type.
- Guide price.
- Basic financial headlines, including turnover and gross margin.
- Premises, such as whether it’s freehold or leasehold, and current rental rates.
- Any licenses or permissions.
- Inclusions, like fixtures and fittings, equipment, and digital assets.
- Number of staff.
- Trading profile, including key selling points, customer mix, and hours.
Note that you should also include your reason for sale. Don’t try to hide this, as it’s one of the first things a buyer will ask. Be open and honest about your reasons, even if that reason is that you’re not seeing the figures you would like.
How Cogogo can help you sell your small business
Cogogo is one of the UK’s leading business marketplaces for buying and selling, including online-only businesses and traditional brick-and-mortar operations. We’re the small business specialists, tailoring our platform to the needs of smaller organisations and ensuring that you’re dealing with interested buyers, rather than time-wasters.
Key to our success is providing clear, vetted listings that give out all the relevant information to interested buyers, which is why they put their faith in us. Our broad reach and brand recognition mean you’re putting your listing in front of as many people as possible.
Additionally, we have a team of experts who support you every step of the way as you list your business on our platform. If you’re ready to sell your company, contact us to learn more and get the specialised support you need to take those first steps.
