What Other Business Brokers Might Not Tell You About Selling a Small Business: The “Small” Is the Problem
“We have the best buyers for you”, “There is a high demand for your business”, “This process will be quick”. You'll hear optimistic speeches like these multiple times when you consult with average business brokers in Alberta, Canada, to sell your small business. But unlike the best business brokers in Edmonton, they might not tell you this. The size of your business is a problem. The fact is not that it has no value; it’s because the market, the mindset, and the mechanics regarding small business sales are stacked against you.
What an Average Business Broker Won’t Tell You About Selling a Small Business
There’s a reason why you should only trust a good, reputed, and experienced business broker. And that’s because an average, low-quality business broker won’t tell you the following.
1. Small Businesses Attract Fewer Buyers
This is the part they rarely say out loud. There’s a much smaller pool of buyers for a small business compared to larger companies. Investors and corporate buyers typically look for scale, systems, and strong management teams. Most small businesses don’t offer that.
Instead, you’re often looking for a first-time buyer, someone leaving a job or chasing a dream. That buyer pool is cautious, budget-limited, and slow to act. Brokers don’t like telling sellers that it might take months just to find one serious lead.
2. Financing a Small Business Sale Is a Headache
Larger deals attract banks. Smaller ones? Not so much. SBA loans are an option, but they come with red tape and strict qualifications. Many buyers for small businesses expect seller financing. This means you carry the risk post-sale.
Most brokers avoid this uncomfortable topic in early conversations. They’d rather keep you hopeful. But the truth is: if your buyer can’t secure financing, the deal dies. Otherwise, you become the lender.
3. Your Business Might Be “Too Owner-Dependent”
You are your business. That’s the curse of many small businesses. After a lot of thinking, you might have decided and told the business broker, “I want to sell my business.” You might think that they will handle everything for you. But the fact is, without you, your business doesn’t run smoothly. That’s a red flag for buyers, and brokers know it.
So here’s the thing. Few brokers will push back hard on this during the listing phase. They’ll take your listing, collect the marketing fee, and let you discover the harsh reality later. This is when the buyers walk away after seeing how critical you are to daily operations.
4. The Profit Just Doesn’t Excite Most Buyers
A small business making $80K to $100K a year in profit may sound decent, but for most serious buyers, it doesn’t move the needle. After taxes, debt service, and reinvestment, they’re left with a salary that may not justify the risk. Brokers may inflate your expectations to win your business. But when it’s time to market the business, they know the margins won’t create urgency in the buyer's mind.
5. Confidentiality Gets Compromised More Easily
In a small business, everyone knows everyone. It’s hard to quietly market the business without employees, customers, or competitors catching on. Once that happens, staff morale drops, customers get spooked, and competitors smell blood in the water. Some brokers are sloppy about confidentiality or treat small deals with less rigour. The risk? The sale crashes before it even starts.
6. Many Brokers Won’t Work That Hard for a Small Deal
Let’s get this straight. Most brokers make money from commissions. Smaller businesses equal smaller commissions. Many brokers take on your listing, post it on a generic platform, and wait. There’s no real strategy. No outreach. No hustle. They’re hoping someone bites. You’re hoping for a miracle. That’s not a plan. That’s just wishful thinking disguised as a sales process.
Final Thought: Small Business Sales Require Big Strategy
Selling a small business isn’t a big thing, but it does not come without any challenges. It requires realism, planning, and the appropriate kind of support. The “small” in small business is equivalent to worthless; it means that the business is specialised. So, you would need a new owner who knows how to structure a deal for a small but significant operation. They should also be aware of how to screen the right buyer and how to protect the legacy you led all this time.
Don’t let sugarcoated promises make you undertake the wrong decisions. Hire business brokers in Edmonton from firms like Performance Business Advisory. You deserve transparency, not just talk.
Contact us to discuss the selling or buying of a business.