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.
4. Burnout
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.
5. Retirement
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.