There are several schools of thought available for a business owner and

his broker to consider when establishing the initial asking price for the

business.  And there are a number of factors involved in deciding how

aggressively to set that price.  In the case of an impending divorce or

severe financial stress it makes perfect sense to go low, be aggressive with

the price-let potential buyers know that you are serious and mean

business.  We aren't fooling around.

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An opposite view might be to start high, expecting and anticipating that

buyers will want to negotiate for a better deal.  Like buying a car, this

philosophy definitely can hold some truth in many cases.  

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Perhaps the best approach is to be moderately optimistic. By that we

mean to give buyers an opportunity to suggest a slightly lower offer than

the asking price but yet not start so high as to lose credibility from the

outset of the process.

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If your broker's evaluation suggests a likely selling price of $500,000, there is no need to start at $750,000.  You will be wasting valuable time and running off your most likely purchasers.  There is a saying in business brokerage that "first buyers are best buyers". This can definitely be true.  

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Maybe more so if you are in a niche business, the kind of which serious buyers are combing the internet daily to uncover.

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Bottom line: know what your business is worth, make sure that lenders will support that asking price when serious buyers surface, and price accordingly.  Use your broker's expertise and methodology to help you set a price that will get the job done.
 

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Importance of Record Keeping...