What are pros and cons of putting a FOR SALE sign up for the sale of a retail business?

In Selling Property - Asked by Suzanne S. - Jul 11, 2016
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Answer(s)

Swope L.
Broker/Agent
West Chester, PA

I would think it would make more sense to put a "Business For Sale" sign up, so people do not perceive that the real estate is for sale.
This might also be an opportunity for you to connect with a Business Broker in your area and refer them the business. That's opening up another business referral source as well as putting the job into the hands of the person who is most knowledgeable and qualified to do the work.

Jul 11, 2016
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Boots S.
Broker/Agent
Corpus Christi, TX

I would not put a sign up on the business. Statistics prove that if a sign goes up, business slows down. Choose a Commercial Realtor who can market your business privately. The gossip around your town needs to be how wonderful your business is and that you are so busy you can barely keep up ... not that you are selling. My 2 cents.

Jul 12, 2016
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Mike S.
Owner/Investor
Miami Beach, FL

if you put a sign up...you might as well lock the doors and call it a night.
It is perceived as a sign of desperation
you are not targeting a buyer, you are telling everyone that you gave up and the business is dead.

Jul 13, 2016
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Lisa A.
Broker/Agent
Southlake, TX

I agree with all answers here in my DFW market. It screams to customers "I have no money" i.e. you are in danger doing business with this business. In fact we don't even put up fully leased, investment property sales signs here because it scares off renewal tenants AND brings a lot of "tire kicker" (senseless inquires and unqualified buyers) to both subjects that we may be marketing within a particular piece of commercial real estate. It essentially protects all owners of property and businesses.

Jul 13, 2016
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Rick S.
Broker/Agent
The Woodlands, TX

There are 4 reasons not to put up a sign.
1. It runs off customers because they do not know if you will be there next month.
2. Employees get scared and leave.
3. The competition will use it against your client
4. Bankers and creditors may tighten up because they do not know where you will be next month.
One client told me their business dropped 25% when the previous agent put up a sign.

Jul 13, 2016
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Gabriel P.
Broker/Agent
Weston, FL

These are the disadvantages:
1. For employees: They may start searching opportunities outside and impact the performance of the business.
2. For Creditors: Suppliers may suspend any credit line.
3. For competitors: They may use that sign against them and cost share of market.
4. For customers: They may perceive that the business is closing.
5. For your client: It may start loosing revenue and end selling the business for less.
Therefore, I maintain confidentiality for the business on sale. There are specific websites just for business. like the http://bbfmls.com/ where different business brokers list and research inventory of business opportunities.

Jul 13, 2016
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