Today, I want to talk about a topic that comes up all the time with business owners:
Why you need to get your asking price right when selling your business. https://youtu.be/CuiJUenzEzc
1. The Most Common Mistake Sellers Make
When I was a business broker, I would meet sellers who were convinced their business was worth far more than it actually was.
Example:
Business value: $275,000
Seller’s “needed” price: $500,000
Many sellers base their asking price on personal financial needs, not what the market will actually pay. That’s a huge mistake. What you need has nothing to do with what the business is worth.
If you need more money to retire, maybe you aren’t ready to sell. That’s okay—but don’t expect the market to meet your personal goals.
2. Overpricing Kills Your Chances With Reasonable Buyers
Some brokers might tell sellers: “Let’s list at $550,000—you can always negotiate.”
I never worked that way. I would either price it close to fair market value or decline the listing.
Why? Because:
Reasonable buyers know what a business should sell for.
If they see a $275,000 business listed at $550,000, they assume the seller is unreasonable.
Reasonable buyers are educated, motivated, and ready to act, but they won’t waste time with sellers who are out of touch.
Overpricing a business repels the very buyers you want.
3. Who Overpriced Businesses Attract Instead
If you overprice your business, the only buyers who show up are usually unreasonable buyers:
They low-ball your business at $150k–$200k
They may lack financing or motivation
Some are tire-kickers, wasting your time
Meanwhile, the serious buyers never call.
4. The Reasonable Buyer Is Key
A reasonable buyer:
Has money and motivation
Understands business valuation
Won’t pay double the worth of a business
Your goal as a seller is to attract these buyers. That only happens when your asking price is accurate and credible.
5. How to Get the Price Right
Getting it right starts with proper advice and a thorough evaluation. That’s why I do Most Probable Selling Price Evaluations for my clients worldwide.
A proper valuation allows you to:
Set a realistic asking price
Have intelligent conversations with potential buyers
Attract buyers with money, purpose, and motivation
Don’t guess your business’s value. Work with someone who can show you exactly what it’s worth.
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