Starting a business from scratch is an incredibly difficult and admirable thing to do. It’s like the first time you swam in the ocean as a child. Would there be sharks out there? Would jellyfish flock towards you? What if a giant wave came in?
Hopefully, you weren’t bitten by a shark but starting something in the great unknown is an amazing accomplishment. That’s why it makes it all the more harder to sell.
Just like building a business, it takes plenty of time. Plus, there aren’t always tons of prospective buyers waiting around for a business to hit the market. 90% of people that go looking to buy a business never even make an offer.
If you have decided to sell your business, when is the right time? We’ll dive into some tips and moments where you should look into it.
You Lack the Energy and Drive to Keep the Business Growing
In Lethal Weapon, you may remember side character Roger Murtaugh often saying, “I’m getting too old for this stuff.” Not only was he too old, but he just didn’t have the energy or drive to do a lot of the crazy stunts he was pulling.
If you find yourself in the same situation, then that’s an immediate red flag. You don’t want to research new marketing techniques or you’re considering retirement. You might have come super far since the beginning of your business, but now you feel like it’s time to move on.
You can look to sell it to someone who has the skills and drive necessary to continue growing the business.
You Want to Start Another Business
If you’re a business owner, then you’ve been blessed with the entrepreneurial spirit. You’re always on the lookout for the next opportunity or big business idea.
The one thing you lack, however, is cash flow. In order to start your new business, you’re going to need a big influx of cash. The best way to obtain that influx of cash is to sell your current business.
Your Business Value Grows
Valuing your business can be difficult at the beginning, but if you’re noticing an immense growth year after year, then it might be a good idea to cash in on the opportunity.
Your goals to stay local are quickly moving out of your hands and you wished to keep the business on the small side of things. When this happens, it’s best to talk to experts to determine your value before deciding to sell your business off.
You Want a Job Change
This can come in many different forms. You might have been offered a position elsewhere or you have decided that being a business owner just isn’t for you.
If you find yourself scouring job boards “just to see what’s out there”, then it might be time to consider what direction you’re going in with your business. As a small business owner, you need to be 100% there and if you’re not, then it could be bad news for your business.
The Risk Outweighs the Reward
Is your industry on the way out instead of on the way in? It could be because of tax burdens or simply the industry changing as a whole, but things are definitely not the same as they were months or years before.
You’ve already run a great risk by owning a business but if you can see doom forming on the horizon then it might be time to start looking to sell.
Outside Life Forces
Starting a business has probably taken up a ton of your time over the past years, pulling you away from family and friends alike. Running the business has definitely taken up a significant portion of your time.
Maybe you’re stepping back and noticing that you’re missing out on certain life events or these life events are needing you more and more. Or, you could just be wanting more “me time” and your business is sucking all free hours away from you.
Business Partners Want to Sell
After a few years of working together, your business partners might decide that they want to back out and sell. If you find yourself stranded on business island, then it might be time to jump on their ship.
You’re more likely to gain a profit by selling with them instead of trying to work with new partners.
