To sell or not to sell? It’s an age-old question for business owners; and a question that’s sure to stir up some emotions.
As a business owner, it is likely that you have invested time, effort, and money into building your business, making the idea of handing it over to someone else a daunting concept.
Nevertheless, there will come a point when an exit is necessary. And determining the ideal moment for this to happen can be a challenge in itself.
There is no formula that will be able to tell you when the time is right, but after talking with numerous business owners over the years, I’ve noticed some common drivers behind the decision to sell.
If you’re on the fence about whether you should sell, here are some key indicators that could signify it’s the appropriate time to sell your business.
how to know when it’s time to sell your business
- your heart is no longer in it
The past couple of years have brought many challenges to say the least, and for some business owners, they have reached their limit.
We know it’s unrealistic to maintain the level of excitement you had when you first started out, but if most days have you feeling flat, it’s time to consider selling.
While selling your business could be the best solution, it doesn’t happen overnight and getting advice early, from your accountant or an experienced business broker, will make the process easier.
- your business is growing, growing, growing!
Over the lifetime of your business, you’ve put in a lot of effort, and it’s finally paying off! If your business is flourishing, has a great team on board, and is accomplishing things beyond your wildest imagination, you’re holding all the aces.
They say the ideal moment to sell is when there’s still opportunity for the buyer, meaning now may be the perfect opportunity to cash in and take some money off the table.
- your priorities have moved
Having various interests both in your business and personal life is common for many business owners. The secret is knowing what to do when you notice you’re more interested in your hobbies than your business.
If you catch yourself devoting more time to those other pursuits instead of focusing on your business, it might be a good moment to reconsider the road ahead, and there’s no shame in that!
In fact, the last thing you want after years of investing in your business is for the distractions of your side ventures to negatively affect its value. At this point, it’s crucial to think about the future and decide what is best for you and your business in the long run.
- your industry is changing
If you think the tide is turning in your industry, it might be time to get off the beach. While no one has a crystal ball to predict the future, we can often look towards trends in human behaviour, changing government policy and technological developments to help.
If the future of your industry is uncertain, and you are getting that gut feeling to sell, it might be time to act. By doing so, you’ll allow another entrepreneur to bring their energy to the table and tackle any challenges that lie ahead.
we’re here to get you sold
In all these situations, it’s important to remember if you want to get the best outcome when you sell, you should try to control the timing of your decision and the sale process as much as possible.
Sadly, for some business owners, the decision to sell is often made for them by some unexpected event, and in these situations the value of the business can suffer.
If you’re thinking it might be the right time to sell, but don’t know where to begin or would like to talk about your options, feel free to reach out to us at broking@businessdepot.com.au or give me a call directly on 07 3193 3017.
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general advice disclaimer
The information provided on this website is a brief overview and does not constitute any type of advice. We endeavour to ensure that the information provided is accurate however information may become outdated as legislation, policies, regulations and other considerations constantly change. Individuals must not rely on this information to make a financial, investment or legal decision. Please consult with an appropriate professional before making any decision.