When starting a business, you may feel liberated, excited, and even a little overwhelmed. The people who are around you may be immensely proud of your achievement and possibly envious. Growing and running a business can easily consume more of your time and energy than working a full-time job. People who decide to sell their business often feel a combination of relief and accomplishment. We’ll cover some of the most common signs that suggest it may be time to sell your business.
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1. You’ve Achieved Your Financial Goals
For some people, starting a business is just a stepping stone to another financial goal. These people may be in business to pay off debt, supplement their income, or raise capital for another venture. After they achieve their objective, continuing to pour time, energy, and capital into the business may not be worth the investment. Even if you did not originally plan to sell your business, getting out when the business is at its best can allow you to avoid taking substantial losses if things were to change in the future.
2. You’ve Received an Offer
If you are even remotely open to selling your business, the best time to weigh the options is when someone makes a competitive offer to buy your business. Even if the offer comes before you’ve had time to seriously anticipate selling, taking the present offer that is in front of you may be more profitable than risking a future decline in the value of the business.
3. The Market is Beginning to Decline
Speaking of decline, your business may be experiencing a downturn due to a broader economic slowdown. If all signs are pointing to a decline in the market or in your industry, you can mitigate the damage the broader economy may do to your business by selling.
4. You Need to Free Up Time and Energy
Some business owners discover that they need to choose between running their business and focusing on other areas in their lives. If your priorities have changed and you no longer have the bandwidth or desire to operate your business, selling can be a positive solution. Instead of abandoning your business or allowing it to slide into disarray, you can be compensated for all of the resources you have invested in growing the business by selling it at the right price.
5. You’re Ready to Retire
Selling a business at retirement makes sense if the business owner does not have a business partner who can take over operations. In a family-owned business, there is no guarantee that the business owner’s children, siblings, or nieces and nephews will want to run the business. If transferring the business’ leadership into someone else’s capable hands is not part of your continuity plan, you may want to sell the business when you retire.
Getting Advice Before Selling Your Business
The decision to sell your business is not a small one to make. Beyond determining whether you are ready, you will also have to work out the logistics. We recommend speaking with a qualified business broker when planning to sell your business.