Arguably, there is never a wrong time to sell your business. There will always be interested buyers – the only caveat is the selling price, depending on the market and the health of your business. However, you may be in a position where you would like to sell sooner rather than later. Here are six signs that it’s time to sell your business.
- Are you lacking passion?
It is not uncommon for business owners to no longer get butterflies every morning on their way to work. An exciting entrepreneurial endeavor can suddenly feel like a chore. If this is the case, it is absolutely time to consider selling your business. One should never live their lives working outside of their passion.
- Have you peaked?
Do you feel as though your business has outgrown you? Perhaps you feel like your company has the opportunity to continue growing, but you do not have the means, creativity or natural skills to do that. This is an excellent opportunity to sell your business to an aspiring entrepreneur who can take your business to the next level at a fair price.
- Is your net worth tied up in your business?
Even if you have established a solid business, you may find that too much of your net worth is tied up into it. If that is the case, it is completely normal to want to convert some or all of the equity in the business to more liquid assets.
- Do you feel conflicted about major company decisions?
Is it time to invest in new equipment? Is it time to consider relocating? As a business owner reaches the end of their career, they might be less willing to make financially risky decisions. This fact, however, could be detrimental to future growth and the success of the business. If this is true for you, it is time to hand the company over to someone willing to re-invest to help the business continue to grow.
- Is your market in decline?
If your market has peaked and is at risk of sudden decline, it is smart to make a strategic exit.
- Does one of these apply to you: death, divorce, distress, disability or disagreement?
Finally, some of the most practical reasons to sell your business - one of the five Ds. They are often the case – in fact, they are a factor in the decision to sell 50% of the time. If this is the case, you may have a contingency plan at hand. If not, you may risk selling for less than what your business is worth because you need a quick exit. Whatever the case may be, it is completely normal for one of these reasons to inspire a sale. If this happens to you, a business broker will be your greatest advocate for a successful, and hopefully, a highly profitable sale.
Think it might be time to sell your business? Contact your local Transworld Business Advisors today to schedule a consultation with one of our experienced business brokers. We will work with you throughout the entire process and be available to answer your questions and address your concerns regardless of your reason for selling your business.
