When is the right time to sell your business?
Are you in a constant state of anxiety because you want to sell your business but don’t know when is the right time? Do you consider selling your business for a long time now but still, you don’t have the courage to let go? Well, you’ve come to the right place!
Selling your business is not an easy process; and the timing in selling your business is very important. You have to think about a lot of things including your workers, the economy, your investors, your family, your clients, and a whole lot more. But in the end, the decision to sell is yours. You have to think about what's best for your business. And sometimes, a little push is what you need to do it.
To effectively sell your business, you have to reflect not only professionally, but also personally. Your own motivation and interests to run your business are also as important as its technical details like capital, sales, and assets. So when you reflect, you have to think about a lot of information. It is also important that you know how to attract buyers into your business because really, the right time to sell your business is when buyers took interest in it!
Here, we will be listing four (4) items that will summarize both the personal and professional reasons that you need to consider when selling your business. If you checked all of the items, then maybe it’s time for you to sell that business.
You are more exhausted than motivated. When you run a business, it is important that you are passionately involved in operating it. Forbes highlights the importance of interest in running your own business. When you are motivated, everything will fall into place so easily because you are willing to do more than you can give - you will sacrifice your time willingly because you are committed, and you will selflessly care about your employees all the time. But, when you reached your limit and your desire has already plateaued, you will find it hard to sustain what you have begun. Your business will be in so much trouble because you won’t care as much as you have in the beginning. This may be caused by changes in values or lifestyles. Yet, these changes are detrimental to the health of the business. When you find yourself exhausted with all your sacrifices and efforts, and your commitment has dwindled significantly, then it is time to find a new CEO.
Your company has outgrown you. When you start a business, sometimes you have to be prepared for things that are hard to accept. One such situation is when your skills have started to pale in comparison with the demands of your business. Different surveys have shown that once a company starts earning more than $5 million in annual revenues, it will began to demand leadership in different areas. Prepare a business exit strategy before the turmoil begins. This means that you, as a sole owner of your business, have to look for other people who will co-run the business with you, or that you have to find a capable CEO that can address all the demands that your business requires. When this situation happens, you are no longer an asset to your company and you no longer have the capacity to take it to the next level; so, you have to give way, open the path that will make you company grow. Don’t hinder the growth of your business.
You are moving against the flow of the market. Today’s fast-paced society can bring bad predicaments to your business, especially if your business model is one that is not viable and flexible. When current trends in the market have the potential to threaten your business and make it irrelevant, then it’s high time to consider selling it. For example, the growth of AirBnbs and Ubers decreased the traditional businesses of hotels and taxi companies. Remember, you have to be proactive. The truth is that the market will sooner or later drown your company until you can’t find your way out. Don’t prolong the agony of suffering - it is important that you sell your business when there’s still time to sell it.
You are presented with a great opportunity. Contrary to popular belief, and in line with reason number 2, when your business becomes so big, the risks you have to take will increase significantly. And sometimes, in this kind of situation, offers will come in almost from all sides of the markets – buyers will offer to buy your company or you will be presented with new job opportunities that can pay you so much more. Your business had already given you enough satisfaction and financial stability. But when continues to grow, you won’t know the risks and you will start doubting everything – will your skills be enough to sustain its momentum, will your team be enough to manage the growth, will your resources be enough?
Selling your business is still a business in itself. You don’t lose when you sell your business, you just have to find the right time and right reasons. Yes, your business is a product of your hard work, but you have to be honest with yourself if it has the potential to become more successful without your help. Selling your business might be risky, but sometimes, it’s only the exit option you have to keep both yourself and the business going. Partnership opportunities are all around, keep your eyes open for options that present themselves.
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Brett Pittsenbargar is a savvy business investor and turnaround strategist dedicated to assisting business owners reach their objective at every growth phase, listen to an interview between Eric Dye and Brett Pittsenbargar. With a background in business development and investment experience, Pittsenbargar understands that business is much more than written contracts, it is about the people working every day in the business who matter.
View more articles at https://medium.com/@brettpittsenbargar
Disclaimer: This article is intended to give you general business information, not to provide specific legal or financial advice. Be sure to consult your attorney, accountant, and financial professionals for any specific questions relating to your business.