When putting together the pillars of a hopefully successful business empire, it rarely crosses the mind that you might need to sell one day. Due to a variety of reasons, whether good or bad, that day is here for some business owners. And it leads us to the question: when is the best time to sell your business?
In this article, we find plausible answers to the question “When is the best time to sell your business?”. It is a question many business owners dread although selling a business can be a good thing. Without further ado, it’s time to call it quits when:
1. The company has outgrown you
When starting up a business from scratch, you’ll be its greatest asset. As the years go by and operations begin to get more complex, you may be relegated from the star quarterback role to a place on the bench.
You might have grown your company on excellent sales skills but once it has blossomed into an enormous entity, it might necessitate different leadership across the board to ensure all parts work seamlessly. While some can adapt to the evolving requirements, not all can. If you fall in the latter category, then consider the possibility of handing over your enterprise to someone best placed to steer the ship in the right direction.
2. The market is changing
Cast your financial gaze into the future to determine if there’s a horizon that spells doom then nip that reality in the bud before it obliterates you. If an unfamiliar megatrend looks set to plunge your business into the nether realm of preference, then don’t stick around to see that happen. Start formulating an exit plan asap.
For instance, if a speed-dating service is my tool of trade, it’d be prudent to keep an eye on something like Tinder. If it’s a hospitality business, then Airbnb would have me scratching my hair out. If it were a taxi service, I’d not be waiting around for Uber to take root. The point is, anticipate major shifts, technological or otherwise, and run for the hills before it’s too late.
3. There’s a better opportunity on the table
It’s not all bad news as sometimes your business is simply holding you back from greater things. Parting with it becomes a way to break free of those shackles opting for the lucrative appeal of a possibly better alternative.
Lucrative here implying not only a more profitable niche switch but also the highest possible market value for your business or interest from major players in the industry with deep pockets. A young netizen with a budding website turning decent returns, for example, should not think twice if social media giants Facebook come calling.
4. Your heart is no longer in it
You might have begun with all the energy of a raging optimist and while it might have worked out well for you, you’re now feeling like each day is a struggle to drag yourself over the line. Interests naturally change and when they do, pass up your business to someone more motivated.
Alternatively, a pending retirement can also be concrete grounds to give some else the steering wheel as you take the backseat and eventually squeeze out of that grueling car altogether.
Last but not least, health issues also prove a valid reason to step down. If you are battling chronic or persistent diseases, you’ll not be able to give your 100% so it’s best you offer it to some else who can.
When is the best time to sell your business?
Determining the best time to sell your business is practically up to you. It depends on all the factors stated here above. Selling a business is never easy but, if you get your timing right, you’ll reflect upon it as a wise decision.