Although there is never a “best” time to sell, there are certain factors to be aware of in order to lower the risks inherent to selling your business. Here are five signs that it might be just the right time.
- The future doesn’t look bright.
You may be anticipating some future difficulties for your business. Perhaps some new technology could undercut your business model. Maybe upcoming legislation will be a problem. Or it could be that a larger company is moving into your space. If your business model is no longer looking viable, get out while you can.
- You’ve outgrown the business.
In some cases, you may feel you’ve learned all you can learn from your present endeavor. Perhaps you feel you’ve maxed out the income you can get in your present niche, and you want to move into other spaces that require different business models altogether. If this is the case, it’s time to step up to a bigger league.
- Your business has outgrown you.
Different phases of a business’s lifecycle require different skill sets from their leaders. A common issue here is the inspiring founder, incredible at networking, selling, and raising capital, who has no experience in running a large, established business. If your business has moved past your skills, it’s better to be honest and get out with the maximum gain.
When you think it’s reached its peak, or it’s breaking records, then that is the best time to sell!
- You are burnt.
Everyone knows that running a business is difficult. That’s why most people don’t even try it. But even with the difficulties, running a business is supposed to improve your life, not make it worse. If your stress levels are through the roof and your passion is through the floor, it’s time to find greener pastures elsewhere.
- The present business valuation is good.
If you have ever seriously contemplated selling your business someday, there’s no time like the present if your business is doing well right now. It’s not a bad idea to spend a little capital each year to get your business professionally valuated in order to track your business’s progress. When you think it’s reached its peak, or it’s breaking records, then that is the best time to sell!
For more advice on selling a business, contact our expert team here.