4 reasons your accommodation business isn’t selling
When you’re selling an accommodation business, you want to sell it for the best possible price and in a reasonable time. When the process takes longer than usual, it’s time to look for answers — and solutions. Here are four reasons why your accommodation business isn’t selling:
1. You haven’t focused your financial information on sales
Whether you are thinking about listing your accommodation business for sale or have had it on the market for a while, you need to structure your financial information to make it attractive to buyers. Your buyers want to know how much money they can make from your business, so your numbers should show them the answer.
Create a well-documented financial history so that buyers can see potential profits. In addition to your current and recent past profit-and-loss statements, include graphs that indicate consistency and growth. Ensure that you have a set of financials that has been prepared by an industry specialist.
Research local industry and business trends so buyers can see the potential for growth. This is especially important when you have a regional business for sale since there are fewer potential visitors. New industries coming into a community, as well as tourist attractions in the area, indicate excellent potential for growth.
2. You haven’t addressed potential risks
When you’re selling a motel or other accommodation property, you cannot assume that your buyers are aware of its potential to overcome risks. You must address all these perceived risks in a form that makes buyers feel comfortable about buying your accommodation business.
For example, if you have a regional accommodation property for sale and a local manufacturing firm has closed, you should state that in your business overview. Then, look for factors that can outweigh the negative ones.
If another company has moved into the old facility’s premises, make sure you state that, as well as the new company’s history and potential to attract visitors to the area. If the region has ramped up its tourist industry in the last few years, list statistics that show the growing potential to attract visitors.
3. Your marketing campaign leaves your property virtually invisible
Selling an accommodation business differs from selling other businesses. Potential buyers often search for an accommodation business for sale through industry-specific publications, targeted Internet searches, and even on social media.
To reach all those buyers takes expertise in not only running motels and other accommodation properties but also in selling them. Everything from sophisticated data analysis that uncovers your target customer base to researching keywords that buyers search for takes expertise and time—time you don’t have.
You need someone who has the time and expertise to market the property you’re selling to qualified buyers. Without exposure to people who have the money and motivation to buy your property, you’re likely to have difficulty finding a buyer who will pay a fair price.
4. Your broker fails to sell your accommodation business’s potential
Brokers who don’t specialise in accommodation businesses often don’t realise the potential. It takes extensive knowledge of the accommodation industry, as well as a good track record in selling accommodation businesses, to see a property’s potential.
At Accommodation Business Brokers, we see the strengths and opportunities each accommodation business has. Accommodation businesses are all we handle; so we have a firm grasp of the market and how to position your property for maximum visibility.
With our focused marketing, your accommodation business will get in front of more potential buyers who trust in our industry expertise. To get your accommodation business out of the doldrums and into the hands of an eager buyer, get in touch with our accommodation business sales team today.