This article was written by Rachel, a mother of 2 beautiful boys. She loves to hike and write about traveling, education, and business. She is a Senior Content Manager at NYBizDb – an online resource for relevant business information.
There are always signs it’s time to sell your business. You’re just ignoring them. Start being honest with yourself before it’s too late.
All business owners wonder what life would be like without the stress and hassle of business ownership. You may need more time for your personal life, want to try something new or move your life to another city, anything can sway your mindset.
Whatever the reason, the sale of your business is a process which you should prepare for. To start this preparation, you first need to the recognize warning signs and pre-empt the deal. You must plan your exit.
1. Life circumstances.
It’s not easy running a successful business. The added stress of unforeseen life events only adds to the pressure.
Feeling overwhelmed and depleted is common for business owners, especially those who are focused on something else. Not having the majority of your focus on the business will be detrimental.
Digital Exits can assist you with the sale of your business, allowing you to focus on other aspects of your life.
2. A good offer comes along.
Chances are, you will start to get offers if your business is profitable. Somebody is looking to enter the market or grow their existing business. If an offer is made, over the current valuation of your company, it’s wise to take it. There is only a small percentage of circumstances where you should not sell.
3. Lower interest rates.
What are interest rates doing? When interest rates are ultra-low, it’s time to leverage other people’s money.
Investors want to borrow and start gaining assets when interest rates are low. A business that generates profit is the type of asset an investor may want.
4. Other opportunity presents itself.
Most business owners, even those who are marginally successful, will be approached with a new opportunity. This can be in the form of a new business, a role at a large organization or something with little promise.
Whatever the opportunity is, there will come a time when you are actively considering going forward with it. When it comes to this point, it’s a good sign its time to sell your business. Additionally, you would unwise to pass up something special.
5. No more ideas.
Creativity was flowing the day the established your business, one idea after another. You could think on your feet and ideas spewed out of your head. You knew what customers wanted and you knew how to differentiate your business from the competition.
That is no longer the case.
If you struggle to maintain this creativity, or worse, it’s gone, that’s a red flag. Without continued improvement and innovation, growth will grind to a holt.
6. Thinking about retirement over your business.
Many of us do this; there is no shame in it. We look forward to the day we wake up and don’t have to go to work. However, spending hours watching the travel channel and searching for great flight deals might be a sign. Your desire is no longer with your business; it’s with the future and the rest of your life.
7. It’s a money pit.
Are you still feeding money into your business? If you’re in a highly competitive space, continuously evolving is critical. Without progression, your business will fall behind and potentially need an expensive overhaul to maintain profitability.
Always be wary of these signs. Anytime you are facing burnout or a lack of enthusiasm, look at your situation and reassess. Don’t wait till it’s too late.