8 Signs It’s Time to Sell Your St. Louis Business
About 50% of business owners try to sell their businesses themselves, and most of them fail.
Deciding to sell your St. Louis business can be heartbreaking because you’ve spent years building it – it practically becomes your baby. However, you also need to ensure that you sell it at the right time to ensure maximum investment return.
With that in mind, here is a look at top indicators that it’s time to sell your business and how Fusion can help you.
1. New Opportunities
Most entrepreneurs land new opportunities, even when their ventures are doing well. The opportunities come in different forms, including a new business, a role in a larger organization, or something that offers more.
And while you might always say “no,” there may come a time when you are conflicted between moving on and staying in your business. This is particularly true if you are ready for a new challenge and feel that the opportunity could be your chance. When that time comes, it might be time to sell your business.
Otherwise, you will regret not taking the chance to try something new.
2. You Lack Motivation and Ideas
Despite your best efforts, there comes a time when we hit a creative dead end. Business owners in this situation find themselves without ideas on keeping their venture afloat.
As a result, the workflow and business sales suffer. Running a business is hard enough without worrying about how your burnout will affect your venture.
So what can you do?
Rather than force unlikely business results, it may be best to accept failure to grow. There is no harm in moving on, especially if running a business is no longer a motivating and fulfilling experience. Consider selling your St. Louis business if you start experiencing entrepreneur burnout.
3. The Business Can Run Without You
When investors shop for a business for sale, they buy companies in different states. However, the companies that attract the best prices are the ones that can continue running profitably.
A business that can run independently is more viable because buyers only need to invest financially. They don’t need to be active participants.
Does that describe your business? Can your business run itself? If so, you’re likely to get a bigger payout. This doesn’t mean you can’t sell if your business doesn’t run independently yet. It just means you should take time to develop it so it doesn’t rely on your day-to-day presence.
Once you have done all you can for the company, you can sell it to someone who can appreciate your hard work and earn a bigger payout at the same time.
4. You Have Fallen Behind on Industry Trends
The emergence of the digital era has transformed the world of business. Traditional ways of doing business are no longer reliable, especially if you hope to dominate the market and become an authority in your niche.
Entrepreneurs have to adapt and meet market demands. Unfortunately, not all business owners get in line with moving industry trends.
All too soon, they find themselves outmatched by competitors because their services:
- Can no longer compete with larger and more aggressive companies
- Have become obsolete
- The business model is not viable enough to stay afloat
If you have fallen behind industry trends and fear you have nothing more to offer, it might be best to sell the company. It can be a difficult pill to swallow, primarily if you have invested years into building the business.
However, the market will quickly swallow you up if you wait too long to sell and reduce the value of what you could get for the company.
5. The Business Has Outgrown Your Skills
As your company grows, there may come a time when you realize you are no longer an asset to the business. And while it’s hard to accept, honest entrepreneurs can often come to that realization by themselves.
For instance, business owners often make good salespeople. But when the company generates $5+ million in annual revenues, it demands more leadership than your skills can deliver.
Having the courage to admit that and take the appropriate steps to ensure the business’s success is crucial. And while you can learn and grow with the company, it’s also okay to sell it to someone who can take it further.
6. Your Professional Aspirations Have Changed
There is no shame in admitting that the venture you spent your life building doesn’t do it anymore. People develop new dreams or realize that they aren’t cut out for a particular type of business. When that happens, it’s best to sell your company and find a new passion.
But all isn’t lost. You can use the money from the sale of your St. Louis business to fund a new venture. Whether it is a new job, returning to school, or a new startup, fresh starts can be pretty exhilarating.
7. You Can No Longer Tolerate the Risk
Entrepreneurs often have to carry the risk of their company’s profits and losses. Sometimes, this can mean celebrating big wins while barely earning a salary at other times. During the early stage of the business, existing on a tight budget and not worrying too much about losses is normal and exciting.
But as you get closer to retirement, your financial needs change, and it becomes more critical to minimize risk. Whatever the case, selling your business might be the best to reduce the risk to your financial profile.
8. You are Ready for Retirement
Beyond financial reasons for selling a business, life events like the death of a partner, health deterioration, or divorce can force your hand. Other compelling reasons for retirement include stress and not wanting to manage the company daily.
Whatever the reasons for retirement, the sale of your St. Louis business might be the best cause of action. The income generated from the sale can help fund your future. Just be sure to make the company as attractive to buyers as possible to maximize the sale value.
Sell Your Business with Fusion
Do you think it’s time to sell your St. Louis business? At Fusion, we are dedicated to providing valuable selling tips and guidance on selling businesses. From pricing and valuation issues to exit strategies, we strive to ensure the sale of your business goes smoothly.
Register here if you want to sell your business with no stress.
