The answers to these questions will tell a story that the buyers must fit themselves into. If they can't picture themselves owning the business, they shouldn't buy it. Whatever the company story, buyers must have the motivation to enter the story at this state and carry the business forward. The recent sale of The Whip and Spoon, a gourmet kitchen specialty shop here in Portland, offers an interesting example of the power of the company story to create buyer prospects and value. The company has such an attractive company story that buyers literally rushed to try to buy it.
Most buyers know to ask about the sales and earnings history.
Advisors who are experienced in larger businesses will often put too much emphasis on yesterday's numbers story as a predictor of the future when they analyze a small business. Small business revenues are not as easily forecast as those of larger businesses. A change of ownership can have dramatic performance results. Small business buyers must try to predict what the business' future will be under their ownershop and see if it will work for them. Buyers must interview the seller carefully on this issue.