Why do you want to sell? The question asked more than maybe any other at PMABB. The answers can vary wildly depending on personal circumstances. Below are the top reasons for selling.
One issue that many entrepreneurs can face is getting caught going from one day to the next and not taking the time to step back and ask themselves, “do I want to keep doing this?” If one of the reasons below resonates with you, it might be time to think about what your life could look like if you sold.
Top Reasons for Selling:
1. The business is losing money.
This reason is the most tragic. Unless there are substantial assets for sale, these businesses can’t be sold. This can be a product of an entrepreneur waiting too long or an unforeseen market change. Don’t let this be your reason to sell because you’re not going to find any buyers.
2. You’re tired of the day-to-day.
Starting a business is exciting, new, fresh, and full of surprises. You are full of passion and enthusiasm. Over time though, you settle into a rhythm, and that energy and sense of challenge begin to fade. Your dream job starts to look more, a lot more like that 9-to-5 you tried to escape. If this sounds a little too familiar, it might be time to start thinking about how best to position for an exit. There is no need to rush, but this lack of enthusiasm will take its toll on you, your business, and your employees.
3. You’ve taken it as far as you are comfortable.
If you lack a vision for the company next or feel you are missing a critical skill set that the company needs to go to the next level, there is nothing wrong with handing the reins off to someone with those skills or vision. Doing so may be to your benefit. A company that is growing is more valuable than one that is stagnant or dropping. If you cannot keep your growth going, maybe it’s time to let someone else take it the rest of the way.
4. Personal health or retirement.
Are you starting to sound like Danny Glover in Lethal Weapon? Or maybe you want to start slowing down and spending more time with family or doing what you love. Retirement may begin to sound appealing. Looking to retire might be the most common reason people state when they are interested in selling. Being able to cash out and enjoy your remaining years doing what you love can be a deserved reward for your years of working on your business.
5. The market is changing.
Realizing your market is changing and you aren’t the right person to tackle the challenges ahead requires incredible foresight and self-discipline. This is a great reason to sell and one that can save you a lot of money, time, and headaches down the road.
There are other reasons to sell, but at the end of the day, you are making a decision that is right for you, and your business. If you are starting to get that nagging feeling that something has to change, make sure you recognize this early and give yourself time to prepare.
The professionals at Pacific M&A and Business Brokers are here to help guide you through this process. Contact us for a confidential and no-obligation consultation, and plan your next steps.