BizBuySell Releases Small Business Survey

May 23, 2007; 02:27 AM

In recognition of National Business Image Improvement month, BizBuySell polled small business owners who have listed businesses for sale on the BizBuySell.com site to determine what they consider the most effective ways to improve the reputation of a business.

74% of respondents believe business owners are more qualified than a hired consultant to improve the image of a business.

68% of respondents said they had never engaged a consultant to help improve their business. Of those who had engaged consultants, 45% were moderately satisfied with the results. 27% felt the consultant did a great job for the business, while 24% regretted the decision to hire a consultant, stating it was a waste of time and money.

"Although opinions on the effectiveness of consultants were varied, the survey confirms that most small business owners are more likely to try to solve problems by themselves rather than seek outside help," Mike Handelsman, General Manager of BizBuySell said. "Small business owners are used to taking charge of nearly all aspects of the business - from human resources to maintenance - so many regard outside help as unnecessary or inadequate. Indeed, in our own business, although business brokers remain the primary source of business-for-sale listings, we have seen a growing number of FSBO (for sale by owner) business listings."

Small Business Owners Value Customer Relationships, Marketing

The largest group (52%) of survey respondents identified better customer service as the most important factor when attempting to improve a business. 81% chose individual conversation with customers - as opposed to periodic surveys and focus groups - as the most effective way to gauge how people perceive a business.

Some small business owners offered specific advice on improving business image through customer service:
- "Answer the phones and return inquiries quickly. Speed in customer communication has been the best thing we have done."
- "Just do honest work, treat your customers fairly and they will tell others."
- "Take a step back - sit with some really close customers, and ask them."

The second-highest number of respondents (28%) selected better marketing techniques as the most important factor in improving business image, and many emphasized the importance of marketing in relation to connecting with customers:
- "Learn how to conduct quantitative market research to find out what your customers are most concerned with before you decide how you need to improve your model."
- "Focus on the customer and on marketing. If you have a great product or service, but no one knows about it, you will fail. But if you provide a lousy product or service, no amount of marketing will make you succeed. It's a fine line to walk."
- Improving Image to Sell a Business Online -

When asked about techniques to make online business-for-sale listings attractive to prospective buyers, the largest group of respondents (50%) said including the right details was the most important factor.

Respondents stated they had success in listing a business for sale online by providing detailed information about what their business did and who it served, addressing business potential and benefits and using appropriate terminology for prospective buyers.

"My business is not for everyone - but would be great for a certain type of person - so I tried to create an ad that type of person would connect with," replied one respondent.

BizBuySell users can access guidelines and tips on the site on how to effectively present their business in an online listing to get the best results.

"Before listing a business for sale, make sure all your documents are in order and the business is physically presentable, or buyers will pick up on the lack of organization and look elsewhere," Handelsman said. "When you place your ad, it should be truthful and provide enough information so people will be interested, but leave out some specifics if you don't want competition and current employees to find out you're selling."

About BizBuySell
BizBuySell is the Internet's largest and most heavily trafficked business for sale marketplace, with more business for sale listings, more unique users, and more search activity than any other service. BizBuySell currently has an inventory of over 46,000 businesses for sale, and more than 975,000 user sessions each month. BizBuySell also has one of the largest databases of sale comparables for recently sold businesses and one of the industry's leading franchise directories.

BizBuySell was founded in 1996 and acquired by LoopNet, Inc. in 2004. LoopNet operates the largest commercial real estate listing service online, with more than $405 billion of property listed for sale and 3.2 billion square feet of space for lease. With over 2 million members, LoopNet attracts the Internet's largest community of commercial real estate professionals. Please visit www.bizbuysell.com.