Are You Really Ready to Sell Your Business
You have worked for years to build your business. You have put in countless hours of blood, sweat, and tears, and you have turned it into a successful enterprise. But now you are thinking about getting out.
The decision whether to sell a business is most likely one of the most important decisions of your life. Only a fellow business owner can relate to the full investment of yourself that you have tied up in this venture and all the emotional attachment that goes along with it. Because of this, it is very important for owners not to overlook the psychological aspects of this decision.
You may think this is the right time to exit your business, but the question is, are you ready to sell? Are you ready to let go of something that has been your life’s work? Can you envision yourself living a happy and full life if you are no longer involved in your business?
To answer these questions, it can often be helpful to examine the true reason(s) you are thinking about selling. Here are some common reasons owners tend to give for selling their business:
Burnout: Some owners believe that they no longer enjoy running their business, and that it is becoming more and more of a chore for them. When this is the case, they investigate selling. Once they get into the process, however, owners sometimes find out that they are not ready to let go completely. If you believe you are burnt out, it could be that you just need a vacation or maybe you need to reduce your role and turn over some of your responsibilities to someone else.
Family Obligations: One common scenario with business owners that want to sell is the need to care for a loved one, such as an aging parent or spouse. It could be that caregiving demands too much of your time to stay in your business. But on the other hand, you might be able to keep the business and reduce your role at least while you are caring for your loved one.
Retirement: Most of us plan to retire at some point so we can enjoy our golden years. But retirement goals are different for everyone. Some want to retire in their 50s, while others plan to work well past normal retirement age. It is important for each business owner to decide when the right time is for them to retire based on what they want to do, not what others think they should do.
New Opportunities: New opportunities come up all the time in the business world, and you may be looking at a new venture that you want to get into using the proceeds from the sale of your business. If this is the case, be sure you have done your due diligence and that you have verified to the best of your ability that this opportunity is legitimate. Also make that this venture is something you have the necessary skill set for, and that you are truly passionate about.
Partnership Disputes: If you own your business with one or more partners, there is always the possibility of a partnership dispute. Some disputes end up being irreconcilable, in which case you might have no other choice but to sell. In other instances, however, disputes can be resolved through methods such as business mediation. Make sure you have exhausted other avenues before deciding to sell your business over a dispute between partners.
Declining Personal Health: Sometimes, we run into circumstances beyond our control, and one common situation like this is a decline in our personal health. In a case like this, you might not want to sell the business, but it might be the best decision given the circumstances.
Cashing In During a Seller’s Market: In most industries, it is a seller’s market right now, and you might be thinking that this is a good time for you to cash in. This may be true depending on the value of your business. Find out the value of your business and decide if it is worth it right now for you to sell.
Ready to Sell Your Business? Speak with a Local Business Broker: If you have thoroughly assessed your real reasons for selling your business and decided that now is the right time, your next step is to talk with an experienced business broker. Also known as business intermediaries, business brokers work closely with sellers to market their business to the widest pool of buyers and help ensure a smooth and seamless transaction.