Business For Sale - All good things must come to an end. When it’s time to sell your business, most people utilize the following strategies:
1. advertise in the newspaper
2. contact a business broker
3. put a business for sale sign in the window
With the growing popularity of the Internet, many people are now starting to list their businesses for sale online, whether through community web sites, business specialty sites, or other venues. Even auction sites like eBay are getting into the action, with literally hundreds of business for sale listings available online.
If you haven’t had any luck selling your business via traditional means, you might also want to consider getting a bit creative with your selling tactics. For example, I have heard of businesses who have transferred ownership via a raffle or a contest. It’s an idea that’s been used often in the United States, but in the past was deemed illegal in Canada.
For example, there was a restaurant in Idaho Springs that was for sale for quite some time without any serious buyers. The restaurant owners decided to hold a writing contest, where each person who entered was supposed to write an essay on why their dream has always been to own a restaurant in a small mountain town.
It cost $100 to enter the contest, and the winner with the best essay (as judged by an independent firm) won the restaurant. I have seen similar contests to win hotels as well as other restaurants, with entry fees ranging from $100 to $1000.
This idea has also gone to Hollywood in the 1996 movie, The Spitfire Grill, where a contest is held to sell a restaurant. Several similar events have been held in the United States over the years.
Similar to the essay contests, raffles tend to cost less to enter and are purely based on the “luck of the draw”. No writing talent is required, and most allow you to purchase as many entries as you like. Raffles are subject to state and local regulation, so before you try to sell your business in this way, be sure to investigate the legal ramifications.
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