When running a successful business, sooner or later you will likely consider selling it off. This may be due to wanting to retire and sail off into the sunset, or you’re wanting to start a new business venture. In terms of the sales process the amount of care and effort put into this will impact on the price you receive for your business. You could be surprised by how saleable your business is particularly if you have been running your business for a few years and are making a small profit or even just have a clear path to making one, it is likely very saleable.
When do you want to start preparing to sell your business?
From the very first day you start your business you should be thinking about selling it. You should always have a plan set in place with an eye toward selling it, as one day this will help to design the business for its long-term value not just the short term. In turn this makes the business much more sustainable and less risky in the long run. If you have clear start and end goals in place.
When is the right time to sell your business?
Now you’ve spent years building and growing your business and you’re thinking now is the time to sell. But when exactly is it the right time to sell your business? In honesty you’ll never know when the right time is to sell, instead it’s best to think when a good time is to sell. This will depend on the circumstances of yourself and your business.
Below are signs that it might be time to sell your business:
Retirement
Simply put you’ve spent majority of your life building, growing, and developing your own business and the time has come to rest. You can sell your business when the desire to retire comes. Selling your business can finance your retirement plans
Risk
Running any kind of business carries great risk. Uncontrollable influences on a business success can be too much to handle a times. This may mean it’s the right time to move on from the business. The longer you wait the higher the risk it becomes.
Changes in circumstances
You may have simply just lost interest in your business as the world changes so do, we. And you may want to pursue a new business venture. As opposed to running two at once you will want to dedicate your full attention to your new venture. Also, changes to your personal life can influence a change in decision. For example, yours’s or a loved one’s health takes a different turn. In this situation it’s best that your business is run in more capable hands.
Money
Finally, it may just be as simple as converting the value of your business to liquid cash that you can use for various purposes. For example, travel the world, pursue a new hobby, pay off a debt etc.
