When Should You Sell Your Business?
People need to sell their business for many different reasons, but they always need to try to make sure they are selling at the right time and for the right reasons. Let’s look at some of the best times to sell the business, so you can make the most of the sale.
The Business Is Sustainable Without You
Even though you might have been the founder and the face of the company, the goal is to get a business to the point where it can run well without you needing to be there. If your company depends on you to take care of certain aspects of the business, and if others can’t handle whatever those responsibilities may be, then it will be a difficult sell. The only way that most buyers would consider such a company is if you stay on at the company in a managerial role.
Ideally, you will have a company that can stand on its own without you needing to be there to run everything. This tends to make finding potential buyers quite a bit easier.
A New Opportunity on the Horizon
One of the best reasons to sell your current company is because you have something new that you can do, which may be even more lucrative. Many entrepreneurs create and then sell a number of businesses in their lifetime. They may enjoy each of the businesses, but they do not get too emotionally attached to them, which makes selling easier.
Along the same lines, you may want or need to sell the company because you have some type of life change that is coming up in the near future. Perhaps you are getting ready to retire. Maybe you need to move to another part of the country and you do not want to, or can’t, take the business with you. You may be considering having children, and believe that the extra money could be helpful. Regardless of the reason, a big life change is a good reason to sell.
If the Company Is Growing Too Quickly
One of the best reasons to choose to sell a company is if the company is growing faster than you are able to fund it. In those cases, it can be difficult to get additional money for the business, but you may be able to sell it to someone who has the money, or who will be able to get the loans for it.
Something to remember when you are selling your business is that you need to have it valued properly by a professional and this valuation must include the company’s quick growth. This is something that can be a very large selling point with a number of interested buyers.
No matter the reason that you want to sell, make sure it is the best time from a financial perspective as well. It’s important that you make a good return on the sale of your company, even if you feel you are desperate to sell.