For every enterprise or business, there is always an end goal. For some, it’s a matter of creating a legacy and building a family business that will span multiple generations. Some entrepreneurs might consider businesses to be natural results of their passions. Hardwired to create, some entrepreneurs exhaust their energies on specific projects and then hop on to the next one because that’s what they’re driven to do. For others, it’s a matter of taking advantage of an opportunity and knowing when and how to quit when they are ahead.
Selling your business isn’t as sinister or heartless as it sounds. Whether it’s the best course of action financially, an ideal exit strategy for retirement or the best way to fund and catapult your next enterprise, there are many factors involved in selling your business. For a more precise and contextualised opinion, ask a management consultant.
In general, here are the telltale signs that you are ready to sell your business.
You Have Achieved and Surpassed Your Initial Business Goals
If you started your business right, then you likely set lofty but relatively achievable business goals right from the start. While every industry has its owns risks, the general trend is that the bigger your business, the bigger the risks whenever you make significant decisions.
There will come a point in time when you are fatigued with all the work, risks and resources you need to put into your business. Maybe it’s time for you to focus on your other priorities like family, health and retirement. If you’re already past the point of your reasonable business goals, you might be taking enormous risks by still pushing through with your business. Instead, consider selling your business (or a part of it) to minimise losses in the long run.
The Market is Changing
The market could just as easily shift around and move against you to the point where competing just isn’t worth it anymore. While options like diversification and acquisition do exist, selling your business could also be an alternative.
Remember the housing bubble? The signs of a changing market were there but the businesses involved ignored them. When everything collapsed, they couldn’t sell their businesses at even the fractions of what they were worth before the bubble.
Your Business Is At Its Peak
Stop for a second and think like an investor instead of a business owner: Wouldn’t getting out of your investment be a great move when a business is at its peak? Maximise your business’ financial value. Quitting while you are ahead is a smart move that insulates you from risks.
If you think that you still want to venture into a new enterprise, selling your business can give you the opportunity to liquidate and move on to the next thing. Instead of reworking a huge chunk of your business, you could always start anew and take advantage of new opportunities and markets. Repositioning can save your business but selling out and a hard restart could be just as exciting.
Need tips and insights on improving your business? Check out our FREE eBook, The Five Pillars of Your Business. Discover what innovations and changes you can make to improve your marketing, operations, human resources, IT and finance departments to push your business to the next level.