2017 Small Business Expenses Report

A record number of business-for-sale transactions and a strong U.S. economy are encouraging more small business buyers and sellers to take advantage of today’s hot market. But for both those looking to sell and others ready to buy, a business transition brings many new, unexpected expenses. To learn more about what these expenses entail, BizBuySell surveyed 1,200 business owners to understand the costs incurred during the four main phases of ownership – buying, starting, selling and expanding a business.

The results provide an in-depth look at the $42 billion small business owners combine to spend annually during a business transition and why that number has increased from when BizBuySell conducted the same survey five years ago. In the official whitepaper, we break down how much buyers and sellers spend in the year before and after a business is sold, which services account for the highest costs and how spending varies across industry and geographic area.

Topics covered in the white paper include:

• The spending power of small business owners. An analysis of business owner spending annually on products and services, including a breakdown across categories ranging from accounting and payroll to insurance and telecommunications.
• How small business owners select a vendor. A look at how criteria such as word-of-mouth referrals, pricing and brand recognition are used to evaluate new vendors and suppliers.
• The most underestimated and least liked expenses. A glance at what type of expenses owners frequently overlook, as well as the top strategies used to cut costs.
• Earning small business loyalty.We take a look at how customer loyalty influences the vendor decision-making process and the importance for vendors to establish a relationship with future owners before they buy a business.

Read the full report