Many reasons would make you sell your business. You may be bored, thinking of retirement or maybe a better opportunity has presented itself. Regardless of the reason, you must have worked so hard to get where you are today, meaning that the business has a lot of importance to you.
No matter how hard it is for you to let go, there comes a time to think of an exit strategy, in this case selling the business.
For you to get the best return from selling your business, you should sell at the right time. Having said that, when is the best time to sell my business? What are the signs that I need to exit my business? Read along to find out.
1. New Opportunity Have Presented Itself
Selling a business can be a result of a positive cause. As an entrepreneur, you are presented with a lot of new opportunities. It could be a different business venture or a role in a large company. If you are presented with a great opportunity that you can’t ignore, it may be best to sell your business.
2. Irresistible Offer
As the word states, you may have received a deal that is so irresistible. If you are sure that the move will benefit you financially and as a business person, act on it.
Many reasons would make you receive such an offer, including:
You have a strong, well-established company – A larger company in the same field as yours may have recognized your skills in establishing businesses and would like to buy your business since it’s already in a moving trajectory. Of course, you will be given a great offer.
Other companies recognized your skills and the contribution to the success of your business – Instead of competing with a passionate business owner, a bigger company may offer you a large amount for the business. This shows that you can sell your business at a higher price to a willing buyer.
3. Running Out of Ideas
If at the beginning you had many ideas on how to improve your business, but now you rarely have one, it’s a clear sign you have done wherever you could. There comes a time when you are no longer creative. You can’t add any value to a project if you are not creative enough.
For you to have a productive company, you should have value-adding ideas. If that’s not the case, selling your company before it depreciates is the way to go.
4. You’re No Longer Passionate About the Business
Do you feel stuck in your current business? If yes, you may be tired of running the business. In this case, you are not excited about running the company as before. You might as well be thinking of pursuing a different venture.
Do not hold on to something that you are not passionate about. Sell the business and venture into something that you are passionate about.
5. A Decline in The Market
If the market is declining you are bound to lose. When the income graph is around a red mark, it’s a clear indication that you should exit. It’s better to sell the company while it has some value than wait for worse consequences.
6. Lack of Partnership
It’s normal for partnerships to end in businesses. It can be due to disagreements or varying ideas on how to run the business. If you are not getting the partners you desire, the best way to go is to sell the entire company.
7. The Company is Outgrowing You
As the company gets bigger, as a founder, you might not be a great asset anymore. In fact, as a company hit above $5 million or $10 million in annual revenue it requires different leadership in different sections. You should notice this and be ready to pass the company to a more productive and capable entrepreneur.
8. You are Thinking of Retirement
As the years go by, you find yourself spending a lot of time thinking about retirement. If you notice that the benefits of retirement are gaining roots in your mind, then, it’s time.
You should not hold on to the business for your entire life while at the same time you want to explore life outside the office.
If you have noticed any of the above signs, it’s time to let go. It is not an easy thing to do but it may be best for you and the company. After all, it is only the brave who can take such a step to pave the way for improvement and the success of something they started.