6 Signs It’s Time for You to Sell Your Business
Entrepreneurship is a risky business. While starting your own business venture can be one of the most rewarding experiences in your life, it can also be one of the most stressful. The reality is that not all entrepreneurships are made to last, and only a handful of businesses truly stand the test of time.
With this in mind, it’s always important to know when to move on and sell your business. In some cases, a struggling business may not be worth holding onto. Or you could be offered an opportunity of a lifetime in selling. But the real question is, how do you when the time is right?
This blog highlights the top signs it’s time to sell.
1. Entrepreneur Burnout
There’s no doubt that owning and running your own business is a full-on experience. Not everyone is cut out to be an entrepreneur, either. It takes a certain type of motivation and dedication to make a true success of your entrepreneurial goals.
Whatever your reason is for burnout — whether you’ve given it your all and have nothing left in the tank, or want to pursue another type of career, you need to honor your fatigue.
What others see at surface level when you’re an entrepreneur is only the tip of the iceberg when it comes to running a business. If you feel like you’ve done your time working grueling, long hours, and managing stress, there’s no harm in moving on.
Knowing when to call it quits takes just as much gumption as it does to start a business. And when it comes to burnout, you have far more to gain than to lose when selling a business.
At the end of the day, owning and running a business should be a fulfilling and motivating experience. If it’s not, you may need to consider moving on.
2. Excessive Business Risk
Here’s a sliver of reality for you: up to 50 percent of small businesses fail in the first five years of operation. As depressing as that sounds, it’s the reality of how risky it is to start and manage a business today.
If you’ve made it past the five-year mark, you’re already ahead of the curve. But what happens when your business success starts to slow down? There may come a time when your business growth comes to a plateau and the risks begin to mount against you.
Do you soldier on and hope for the best? Or do you accept when it’s time to fold and sell your business? Ultimately, it’s no easy decision. But if your gut is telling you that there are too many heavy clouds on the horizon, selling your business in the right timeframe could save you from disaster down the line.
3. An Offer of Purchase You Can’t Refuse
In some cases, the opposite of the above might happen, and your business could grow from strength to strength over the years. You may have dedicated your time to growing your business slowly while operating with a frugal budget.
Often, this gives way to a business that increases in value and captures the attention of other entrepreneurs and business investors. To add to this, your business could fall into a particular niche that grows in popularity over time.
When you’re offered a decent acquisition price, you could walk away with a decent profit. Or, you could walk away with an incredible profit that allows you to begin a whole other business venture. In this case, this might be a good time to sell!
4. You No Longer Have the Power to Compete
It’s no secret that the world of business seems to change at the flick of a switch these days. With the advent of all things digital, this is where many businesses may find themselves unable to compete in certain industries any longer.
Most businesses today can no longer rely on the traditional means of running an operation. If your business has not been able to scale to the demands of the market and industry trends, you could find yourself lagging dangerously behind.
If this is the case, your product and services could become obsolete. As a result, you may not have the power to compete with local competition any longer. Your business model could crash and you may not be able to stay afloat.
While it may be a difficult pill to swallow, it’s crucial to face reality and know when it’s time to move on.
5. Your Own Aspirations Change
There’s no shame in admitting that a business you once had an undying passion for just doesn’t do it for you any longer. Your professional aspirations may change over time, and that’s normal.
On the other hand, you may also realize that you’re not cut out for a certain industry or even owning a business altogether. Whatever your personal situation may be, it’s better to be honest with yourself.
It’s also not the end of the world if you started a business and decide to sell it down the line. Think of it this way — it could provide you with some form of capital to pursue another professional venture.
6. The Circumstances of Life and Retirement
When it comes to business ownership it may feel like your work priorities consume all of your time and energy. While this is a common reality of owning a business, it shouldn’t get in the way of your family priorities. However, this is often easier said than done.
But, there may come a time when your personal circumstances change and your priorities have to shift. For example, a family member could fall ill and need your full attention. You could become a parent and your family will take top priority. Or maybe you’ve served your time in the business world and want to wind down into retirement.
There are a number of personal reasons and life circumstances that could spur the sale of your business. You are not a failure in this case. You have chosen to prioritize yourself and your family — and what could be more important than that?
Is it Time to Sell Your Business?
Making the decision to sell your business may be one of the toughest decisions you’ll ever make. It may feel like your life’s work is coming to an end, but in some cases, it could be the best decision you ever make, too.
If you’re in need of professional expertise on how to sell your business for the best price and on the best terms, then Fusion Advantage is your go-to. Selling your business for what it really deserves can make the entire process much easier to accept!
Learn more about our services, here.