Own a Restaurant? 6 Signs You Should Sell Your Business
An estimated 80% of restaurants fail within the first five years of business. Even fantastic restaurants struggle to keep their doors open, and their owners have to sell.
On occassion, restaurant owners who are turning a profit can feel the need to sell due to the stress of the job. Is it time for you to sell your business?
We’re here to talk about the signs that you’re ready to make a change and sell your restaurant. Read on to learn more.
1. You’re Feeling Stagnant
There will always be periods of stagnancy (whether real or percieved) when you’re running a business of any kind, and restaurants are no exception. Stagnancy doesn’t always mean that it’s time to consider selling, but prolonged stagnancy might.
This stalemate doesn’t only refer to business growth (or lack thereof), it can also be personal. You may feel like you’re no longer growing as a business owner or that your restaurant, even if it’s successful, isn’t putting you on a path toward the success you’re after.
It’s possible that you can fix this stagnancy, but if you’ve already tried to no avail, listing your restaurant for sale might be the best answer.
2. You Want to Pursue Other Ventures
This ties in with stagnancy, but it can also just be boredom or even ambition. If you’re feeling motivated to make a serious change, it could be time to sell a restaurant.
So how do you know if this applies to you?
You might be feeling an urge to try something new, even if it’s still within the field of hospitality or food service. You’re ready to try out different types of restaurants, start your own catering company, or even start working for yourself by becoming a private chef.
You may be interested in trying a new career path altogether. Maybe you’ve had dreams of becoming a tattoo artist, going to law school, or owning a different type of business.
It’s difficult to balance business ownership (especially restaurant ownership) with other large goals. There’s nothing wrong with selling a company when you know that your heart is yearning for something new and different.
3. You’re Losing Money
This is a huge sign that you’re ready to sell your business. As we mentioned before, restaurants are difficult to run, and many of them fail within their first few years. There’s no shame in realizing that your business isn’t, and may never be, as profitable as you’d like it to be.
Restaurants have tight margins, and between paying your team, making the place look nice, paying for ingredients, and paying your rent, it’s more than possible that you won’t turn a profit unless you’re very lucky and serve great food. Luck is a huge factor.
Selling your business while you’re ahead, or at least not too far behind, maybe the best thing for you.
Take a look at your monthly expenses and profits. Before you sell, you can see if you can make any changes to improve your revenue, especially if you’re motivated to keep your restaurant.
Sometimes, however, it’s best to cut your losses and start over with another venture.
4. You Want a Better Work/Life Balance
Having a good work/life balance is crucial for your mental health, but unfortunately, many business owners aren’t able to do that. They start to experience work burnout which can eventually lead to depression and anxiety.
So what are the signs of work burnout?
People who are experiencing burnout tend to struggle with motivation. Even if they love their work, they no longer have the will to show up at the restaurant every day because they’re so worn down.
They may struggle with frequent fatigue. Work burnout can cause insomnia and oversleeping alike.
People who are burnt out are often more irritable and moody. They may start to lash out because they’re struggling to control their emotions.
Even without burnout, people who own restaurants work long hours and may not get to spend as much time as they’d like with their friends and family members. If you have a family with young children, this is an even bigger problem.
It’s okay to step back from being a business owner because you’re tired of it.
5. The Risk No Longer Seems Worthwhile
Unless your restaurant is the best of the best, you’re running a risky business. There is always the potential for failure, and this is sure to be anxiety-inducing.
For many people, the risk is worth it. They’re excited by the challenge.
For others, they’d rather take a step back and fall into a more passive role. They’re ready for a steady income and a lower-stress environment. Which category do you fit into?
6. You’re Reading This Article
If you’ve been looking up reasons to sell your business, it’s likely that it’s already been on your mind for a while. While no one should jump right into selling their restaurant, if you’ve been thinking about it consistently, that seems like a good enough reason.
Reading this is a sign that you’re ready to move on to something new.
Is It Time to Sell Your Business?
Making the decision to sell your business is tough. You’ve poured your heart and soul into your restaurant, but it’s good to know when it’s time to let go.
If you’ve made the decision to sell your business in St. Louis, or even if you’re still thinking about it, we want to talk to you! At Fusion, we can go over your options and walk you through the process. Book a consultation with us today.