Selling your business can prove a difficult, emotionally trying time. After all, you put in your blood, sweat, and tears into building it and making it thrive. So, it is only natural that you want to be sure of your decision to sell.
There is an array of reasons someone would want to sell their business. Here are some of them:
Burnout
The most common reasons business owners have for selling their venture are owner burnout, fatigue, and boredom. The never-ending grind of managing a business can get exhausting and redundant; you may get tired of doing the same thing every day. It takes a lot of stamina and willpower to run the same business for 10, maybe even 30 years. Also, a blow to morale and motivation – such as losing enjoyment in what you are doing – can be difficult to overcome. Sometimes, some business owners lose interest and want to move on to doing something else.
Retirement
This is another common reason for selling a business. Maybe you spent the last 30 to 40 years running your company and now you want to fund your retirement. Selling your business can give you that extra amount of money that you can use to make your retirement more comfortable. Generally, selling because of retirement will provide you with enough time to plan your exit strategy, allowing you to achieve your business’ maximum sale value.
New Opportunities
New opportunities come up in the business world all the time. As a business owner, you may have identified a new opportunity in a different industry or sector of the market – to take advantage of this opportunity, you should determine the market value of your business so that you can sell well.
Location
Many factors go into a business’ success. One such factor is the location. If you have landed a good location, there is a chance that your business will thrive. However, things can change, and what was a great location can turn into a bad one. If and when this happens, you have two options: relocate or sell.
Although it is possible to relocate your business, it comes with many challenges, such as dismissing old staff, moving property, changing suppliers, and having to hire new staff, among others. In most cases, business owners choose to sell and move on.
Poor Performance
Running a business that is floundering is not an easy task. If your business is on the decline, even after you’ve done everything in your power to turn it around and make it profitable, then it might be time to sell. Before your business’ value declines any further, you should call a business broker to help you put your business up for sale. You might not profit as much as you would have if your business had been more successful, but at least you’ll be able to walk away with some money. Maybe you can even use that money to start another business.
There are a variety of reasons someone would want to sell their business, from burnout to their business’ poor performance. No matter their reason for selling, business owners should be careful with the transaction and handover.
