Knowing when the right time to sell your business can be difficult, but there are a few signs that could help point you in the right direction. Here are six that could prove to be thought provoking for your business, your company’s goals, your finances, and your future.
You Want to Retire
One of the most common reasons entrepreneurs go to sell their business is they’re opting to retire. Even if you may be impatient to hit the beach or sleep in on the weekdays, it’s important to still go through the proper steps and channels to be sure you’re getting the right amount for your business.
Exhaustion or Stress Is Taking Over
If passion has left the building when it’s come to your business, it’s quite likely time to sell. When you’re not just enjoying running the company anymore, exhaustion and stress can easily set in. If you find you’re not being engaged properly by the business’s challenges, large and small, you might have checked out without realizing it.
You could also find that new problems presented by your company are causing you more stress or anxiety than they should. Talking to a therapist can help you tell if this is just a passing state of mind or if it really is time to move on.
You Have Another Opportunity
Another common reason business owners exit their company is to seek another opportunity. This could be due to several reasons including these examples:
• You want to travel.
• You are accepting a new position at another company.
• Another business is asking to buy yours.
• You have another start-up idea.
No matter your reason for being in this boat, it is worthwhile to consider your options thoroughly. You don’t want to pass up an amazing opportunity if it helps you grow professionally and personally.
The Company Needs More
This one can be tough as it requires a lot of self-reflection and honesty from the business owner. If you find that your skill set just isn’t what your company needs anymore, it may be best to move onto the next thing. When you don’t have the leadership skills your business needs as it grows, you could be hampering growth.
However, this isn’t set in stone. Just as your business is capable of growing, so are you. It’s quite possible that you are learning the skills you need to keep up and grow with the company.
No matter which side of the fence you’re on, it’s helpful to be honest with yourself here.
A Sale Could Solve Business Problems
No business is without challenges. They’re a normal part of day-to-day operations. But sometimes, those problems can seem impossible to solve. Here are a few examples:
• Do you find your business doesn’t quite have the money to pay or find the employees
you need to run your day-to-day operations?
• Are you having trouble paying or finding top tier employees?
• Are short or long term goals just seeming to be impossibly out of reach?
• Does the current business model or the necessary business model to achieve growth
just not work for you or your skill-set?
• Are you having issues with distribution, funding, talent, sales, marketing, or some other
aspect (or a combination of several)?
It’s quite possible a sale could solve those business issues you’re facing, especially if you have a buyer who has a history of solving these types of challenges. This does vary from business to business and industry to industry, so you will want to explore several different options if you find yourself with a handful of challenges you just can’t seem to solve.
The Market Says You Should
Sometimes, the market will dictate the necessity of a sale rather than your life’s position, challenges, or goals. If the market seems to be against you (or it is against you), it’s time to look into selling. Strong examples of this in the past are Airbnb and Uber/Lyft, where companies in these industries had to rethink their strategies and business, and possibly exit.
Is there a trend coming that could drastically change your industry? It’s important to keep your eyes out for these types of major adjustments and think about what’s best for your company. A tweak in strategy could do it, but it may also be time to leave the industry and sell your business.
Selling your business isn’t always an easy decision, but some signs and situations could make the choice easier. You could find it’s only one sign that’s saying you should sell or it could be a combination of several. Discussing your options over with those experienced in the field could be extremely helpful if you’re on the fence, but it also is important to be honest and educated about yourself, your business, the industry, and any trends on the horizon that could impact your bottom line.
Are you thinking about exiting your business and exploring new opportunities? Want to sell your company? We’re here to help. Discover what we can do for your future and sale.