A business isn’t just some abstract object that exists in our lives. For many people, it provides a purpose, not to mention the means with which to live a satisfying life.
As a result, it can be a difficult decision to work out whether it’s time to sell or not. Sadly, there’s no formula to work it out for you, but by taking the following points into consideration, you can definitely achieve a little more clarity.
What are your personal aspirations?
The first point is to work out what you want on a personal level. Running a business is time-consuming and engaging, on both a practical and emotional level.
On the other hand, selling a business can provide you with the time and resources to change your life in a number of ways, whether that means starting your next professional project or traveling for a few years. Either way, it’s important to think about these issues when considering if you want to sell or not.
Market conditions
Another thing to think about is what kind of condition the market is in. In recent years, there have been a series of dramatic fluctuations, many of them unpredictable. If you’re not in a rush to sell, then in certain cases it might be best to wait a little, until things have calmed down somewhat.
If you’re uncertain about timing, consulting with a business broker like Dexterity Partners can be very helpful. They’ll have helped multiple businesses through similar dilemmas in the past, and will be able to guide you on whether or not the market conditions are optimal or not.
Financial stability
Aside from more general market conditions, you’ll want to carefully assess the financial health of your business in particular. If you have any outstanding debts, or if there are easy opportunities for growth that haven’t yet transpired, it will often be best to deal with these issues before marketing your business to potential buyers. It’s generally best to make your business as attractive as possible before trying to persuade someone that it’s worth buying.
Your well-being
If you’re unwell, physically or mentally, then at a certain point you may need to prioritise your well-being over optimising the sale. Running a business can be stressful and taxing; you may not be able to get quite as much for it if you sell right away, but if the business is running your health into the ground, it might be the best thing to count your losses and start focusing on yourself. If you’re unwell, it’s also possible that you’re actually unable to get the business into a good condition, and selling can help to limit any further damage.
When deciding when it’s time to sell your business, there will be a number of tricky variables that you’ll need to juggle. It’s important to distance yourself from the emotional aspect of the sale and try to think about it objectively – the sale can have a massive positive impact on your life, opening up a range of different possibilities, from retirement to focusing on your family.
