Considering selling your business? Figuring out when to exit is a huge, anxiety-provoking decision. If you exit too early, you’ll miss out on growth that would raise your business’s valuation. Exit too late, and you may miss the wave entirely. Although no one can predict the future, sometimes you get some clues. Here are five signs that it might be time to sell.
There may be trouble ahead
You may be abreast of some future difficulties for your business. Perhaps some technology could undercut your business model. Maybe upcoming legislation will be a problem. Or it could be that a larger company is moving into your space. If your business model is no longer looking viable, get out while you can.
You’ve outgrown the business
In some cases, you may feel you’ve learned all you can learn from your present endeavour. Perhaps you feel you’ve maxed out the income you can get in your present niche, and you want to move into other spaces that require different business models altogether. If this is the case, it’s time to step up to a bigger league.
Your business has outgrown you
Different phases of a business’s lifespan require different skill sets from their leaders. A common issue here is the inspiring founder, incredible at networking, selling, and raising capital, who has no experience in running a large, established business. If your business has moved past your skills, it’s better to be honest rather than cling on for reasons of nostalgia.
Your health is suffering
Everyone knows that running a business is difficult. That’s why most people don’t even try it. But even with the difficulties, running a business is supposed to improve your life, not make it worse. If your stress levels are through the roof and your passion is through the floor, it’s time to find greener pastures elsewhere.
The present valuation is good enough
If you’re only running your business in order to sell it, ask yourself, “Why?” What did you want to achieve with the profits from the sale? Did you have a figure in mind that would solve all your problems, or allow you to go live on a beach somewhere? If your business’s valuation will get you want you want from life, the question moves from “Why sell?” to “Why not sell?”
For more advice on selling a business, contact us at Business Trade Centre today.