How do you know when it’s time to sell your business? Perhaps you’re ready to retire, or your health has deteriorated. Or maybe you feel that you’ve gone as far as you can in your current business and you’re ready for a new challenge. For some, coming to terms with the reality of selling can be hard.
Here are some signs that may indicate you’re ready to sell:
“I’m just over it”
The thought of having your own business no longer makes you leap out of bed in the morning! You’re exhausted, maybe even depressed. You spend more time at work than at home. Things just didn’t turn out as you expected.
It’s probably time to sell. If you continue with this mindset, it’s likely you’ll allow the business to run down, making it harder to sell in the future. The better your numbers, the better the sale.
Whether you bought an existing business or started your own, it sounds as if you’ve gone as far as you can. For many business owners, the excitement and motivation are in those early years, when you’re building up the business and overcoming challenges. Once it’s ‘business as usual’, it’s just not as exhilarating.
If you feel as if the business is plateauing and you’re out of ideas, it’s time to either diversify or sell. Again, it’s better to sell whilst your numbers are strong.
“I’ve outgrown my skillset”
This is more common than you think. It’s also a sign that your business is successful. You’ve used your skills to grow the business to a level where it needs new direction. Whereas once you ran the whole show, the business may now require departmental managers, directors and a whole new raft of skills.
Don’t take it personally – and don’t let your pride get in the way of selling the business for a good price. Think of it as allowing you to move on to a new challenge.
“I’ve been offered a deal I can’t refuse”
It could be that you’ve been approached to sell your business and offered a very lucrative deal. Whilst wads of cash are tempting, think it through before making a final decision. Why is the buyer so keen? Is there massive growth on the horizon? In which case, are you ready to let that opportunity go?
Will you regret the sale down the line? Or will the sale give you the freedom and finance to pursue another dream?
“This was always my plan”
Many people buy and grow businesses with the intention of selling them as soon as they are successful. Just as people buy old houses, renovate them and sell them for a profit, this can be done with businesses. It’s perfect for someone who loves the thrill of the chase but is quickly bored once successful.
Whatever scenario prompts you to sell your business, the same rule applies – preparation is everything. Get your house in order and present your business in the best possible light so you can move onto the next phase of your life with confidence.
This article was written by Xcllusive. Want to know more about investing in a business or when to sell your business? Get in touch with a Chan & Naylor office here. We’ll connect you to an Xcllusive expert consultant.
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