As we age and develop, it is natural for our interests to change personally and professionally.
Business owners, especially serial entrepreneurs, go through a process similar to that of employees seeking a job or career change. But instead of updating resumes and preparing for interviews, your growth manifests itself through new business endeavors, and often, that means putting aside those that no longer serve your interests.
If you feel that you have reached your goal within your current operations, it might be time to seek other horizons.
Pay attention to any of the following six telltale signs that may be telling you that you should sell your business:
1. Changing market trends. Not all successful business ventures are forever
If you think your business is starting to outpace your customer base due to changing market trends, it might be time to sell.
The trick is to sell while your business is at its highest and thus making it attractive to a potential buyer.
Higher valuations translate into higher profits for a seller. If you play your cards right, you can earn enough to live comfortably or invest in a whole new business.
2. You have found the right offer
Luck may be on your side and you receive an unsolicited offer from a potential buyer. If that offer is attractive, you will have to decide if you are comfortable leaving your brand in the hands of someone else.
If the offer is good, it is probably time to sell. With the money you receive from the sale and the freedom it represents, you may be able to withdraw or undertake other endeavors.
3. Personal conflict or burnout
Let's face it, the life of an entrepreneur is not a walk in the park. Even the best can be overwhelmed by the day-to-day challenges of owning a business.
While stress is normal and expected, it can quickly nullify the joy of running a business. If your business is negatively impacting your mental or physical health, this could be a signal to exit.
4. Creativity stops flowing
As your interests and perspectives change, your skill set must evolve as well. It is common for entrepreneurs to lose at some point the passion for which they started their business and at the same time that their business requires some major changes in order to continue growing or to survive.
If reinventing your current model doesn't sound appealing, you may no longer have the energy or desire required for this particular endeavor. Now might be the time to step back and refocus your skills on other goals you're more prepared for.
5. Accumulated debt
Businesses are an ongoing investment and, to some extent, continuing to invest in them may be reasonable. In the early years, debts are expected. However, it is important to be able to recognize a business that is on the verge of success versus one in which it is not worth investing more.
Using your retirement and savings accounts to save a business is not a good sign. Your business should see steady financial improvement, but if instead the numbers deteriorate from year to year, it may not be worth continuing.
6. Retirement is on the horizon
Are you dreaming of blue skies and beaches? If retirement looms in the future, you should start making arrangements to exit your business. Recent reports suggest that 78% of business owners do not have a formal transition plan.
On the other hand, if you are considering selling your business and don't have a formal plan to do so, chances are you will leave money on the table and you will probably not receive the best value for your business.
Entrepreneurship is a journey of constant change, and it often doesn't make sense to stay in one space indefinitely. If you're wondering if it's time to step back and refocus your energy elsewhere, our team can help. Contact Us.
Source: Sunbelt Business Brokers