8 Signs it’s Time to Sell Your Business
Building a business is a labor of love. It is a rewarding experience, but at some point, you might find it necessary to let go. They say all good things come to an end, and it is no different with entrepreneurship.
Selling your business isn’t a simple decision, but it might be necessary. Our goal is to guide you by helping you develop your business plan exit strategy.
If you aren’t sure whether it’s time to let go of your enterprise, here are some signs we advise our clients to look out for.
1. Mounting Risk
Many new businesses fail within a few months of launch. Even after surviving the first months, you have multiple risks to overcome. These risks mount with time to the point of affecting your company’s profitability.
From shifting customer trends, new technology, regulatory laws to new taxes, the situation can overwhelm you. Our team helps you with risk evaluation to determine if it’s time to call it quits.
2. Major Life Changes
Life is dynamic, and some big changes can force you to lose focus on your business. From death, illness, divorce to work/life balance, there are major shifts that necessitate a rethink in your life. At this point, running a business becomes untenable, and selling becomes the best option.
3. Once in a Lifetime Offer
Many entrepreneurs sell due to challenges but you can also get a good offer for your profitable enterprise. After building your business over the years and building its value, a bigger investor might come calling with an irresistible offer. With a big-time acquisition, you get paid for all your efforts. It is an opportunity to cash in on your hard work.
Burnout can affect anyone in life, and for an entrepreneur, this is nothing to be ashamed of. While owning a business is empowering, it demands so much of you. It is a grueling and stressful undertaking that can even affect your health. If you feel tired and less motivated about the venture, it’s time to sell.
If you spend more time thinking about retirement rather than strategizing, it’s time to call it quits. Everyone looks forward to a time without grueling work, and you’ve already earned it.
6. Creativity Block
Modern business is fast-paced and runs on new ideas. If you have a sharp mind, it’s easy to build a startup into a successful brand. However, if you can no longer keep up with the creativity in your industry, your business risks grinding to a halt. It is a good time to consider selling.
7. Business Outgrows your Skills
As your company grows, it might outgrow your skillset, and this is a bitter pill to swallow. It’s good to quit when ahead as you have more leverage.
8. Business Becomes a Money Pit
In the beginning, you need to inject a lot of money into the business to prop it up. However, you might find yourself in a similar position at later stages in a bid to survive in a highly competitive space. If your business becomes a money pit, you should consider cutting your losses by selling it.
The timing has to be right if you want to close the deal when selling your business. We help you prepare for the sale by developing a custom exit plan. Get in touch, and let’s help you get the best value for your investment.
Let’s hop on a quick call to discuss the timing and prospects of an exit based on your goals and the current state of your business. Schedule your free exit consultation today.
You're guaranteed to come away from the call with:
Clarity about your business
Knowledge of the landscape
A high-level exit plan
A rough valuation
Specific next steps
What our clients say
In my career you get to deal with a lot of service providers. There are the below average, the average the the above average. Then there is one category that no one talks about which is the exception. We engaged Hello Exit to source acquisition targets for us. The communication, personal service, attention to details, availability, interaction with the team has been nothing short of exceptional. If ANYONE wants further in-depth conversation about the exceptional experience please reach out.
I worked with Hello Exit for the sale of a business and everything went smoothly. The team was very hands-on and provided a lot of guidance throughout every part of the process. They took the time to get to know my business well and were able to communicate our operation effectively to potential buyers. The sale was a success and I couldn’t have done it without them.
Hello Exit was great working with me to help sell my software company. They made everything clear, were patient, never over pressured me, but kept a strong sense of urgency. I would recommend Hello Exit to anyone looking to sell their business and plan on working with them again in any capacity that I can.
The team Hello Exit is simply incredible! Their expertise and support throughout the entire process of selling my company were a game changer. Their expertise and guidance throughout the entire process was invaluable. They took the time to truly understand my needs and goals, and helped me navigate every step of the way with ease. Hello Exit is exceptional, and they truly go above and beyond to ensure their clients are not only satisfied, but actually excited about their exit!! I cannot recommend Hello Exit enough! Their professionalism, knowledge, and dedication to their clients are unmatched. If you’re looking for a top-notch company to help you sell your business, look no further than Hello Exit. Thank you guys, for all that you do!
It was a pleasure working with Hello Exit and they have my most sincere recommendation. They bring a sophistication and etiquette that is very hard to find in the lower, lower middle market – outstanding preparation, excellent sell-side coaching, a rationale / unbiased disposition, and so on. In addition, they bring a powerful network to the conversation and can add value well beyond the transaction. I hope to work with Hello Exit on many more deals to come!
Hello Exit added tremendous value for our portfolio of companies. They made a complex sale process easier and significantly more efficient. We received 5 offers (two above ask) and were extremely happy with the outcome. As a serial trouble maker that has acquired 7 companies and sold 4 we will be using Hello Exit for future exits.
Hello Exit has built one of the best online business brokerages out there. As a buyer, the company has continuously provided us with acquisition targets that have been very well qualified. Every opportunity has fit directly into the criteria we’ve been looking for which has saved a ton of time on due diligence. If you want to get a jump start on your acquisition pipeline, it’s easy to recommend Hello Exit.
Hello Exit is one of the most knowledgeable business brokerages out there for tech & web businesses. We used they to buy a significant business operated by 15+ employees. Our work in diligence was substantially reduced given the strong & accurate information package he provided. All questions were proactively answered, all supporting data was there and presented in the right format, and everything was accurately represented. This saved us weeks of work! In discussions & negotiations, they played a fair role & helped resolve issues by understanding the issue from the perspective of both buyer & seller. With their knowledge and experience, they were able to make smart suggestions and helped everyone reach a common ground quickly. I would surely work with Hello Exit again. They are super!
What can I say other than Hello Exit delivered on everything they promised… and then some. At first, I didn’t believe it when they said he would sell my agency in a few months. But they were so passionate about working together, a part of me believed they would deliver. And they did. We had 3 offers in 30 days and went under contract with the highest offer. 3 months later we closed on the sale at the price they evaluated us on. During the entire process, their knowledge and experience helped immensely. Any time there was confusion or a hurdle that myself or the buyer had, the team stepped in and smoothed every over. Selling a business is one of the most invigorating yet stressful experience I’ve ever went through and I’m so grateful that I picked the right broker to help me through it. I’d use Hello Exit again in a heartbeat.
The Hello Exit team was great to work with. They helped increase our deal flow with strategic deals. If someone is looking to increase their targeted deal flow I would definitely recommend working with Hello Exit.
Hello Exit was awesome to work with on the deal. They provided great support and advice all through – from initial interest discussions, negotiations, contract closure to execution. They’re very prompt and proactive which sails the deal making through. They also provided great support and mediation help post transition on some key contract payout clauses, which is highly appreciated. I recommend Hello Exit highly to SaaS business owners and entrepreneurs.
I’ve known Dustin (Hello Exit’s Founder) for over 10 years, and actually acquired a SaaS company he founded. I’ve always found Dustin to be extremely sharp, fair and honest, reasonable to deal with, and the kind of person you would want to do business with again in the future (which is rare these days). I’m currently mentoring and incubating over 150 international startup companies, and have already talked with Dustin about bringing Hello Exit into these businesses to broker the exit once they are profitable and solidly into their momentum phase.
Hello Exit is one of the best and most trustworthy SaaS advisories and brokerages in the industry! If you run a SaaS business, and Hello Exit contacts you, you should definitely talk to them! Even if you decide not to sell, it will be a very worthwhile and fruitful conversation.