You’ve heard about well-earning businesses being bought by much bigger companies or even small/medium-sized enterprises that have opted to sell their business despite being hugely profitable. As you may already know all too well, being a business owner comes with many perks and challenges, but one of the biggest challenges you’ll be facing is considering whether or not you should sell your business. If your business isn’t earning well (or is starting to incur losses), then it may not be that hard for you to decide. However, there are instances wherein you should start considering selling your business even if it’s profitable.
Know the Signs
Business owners need to be aware of the signs that may suggest that it’s time to sell a business; realizing too late that you should’ve sold it sooner, or deciding to sell it too on impulse can cost you a lot (and not just financially). As such, we’ll be taking a look at various signs for you to watch out for that might be telling you that it’s time to find a business broker to sell your business — or start considering taking a course to become a business broker so you can sell it yourself):
#1 Personal Reasons
Managing a business, particularly a well-performing one, takes a toll on the business owner. They say being a business owner gives you control over your time as compared to being an employee. While it’s true that you have more flexibility when it comes to your time, it’s difficult not to ‘bring the business at home,’ and even worrying about it when you’re about to sleep. If your business is getting in the way of your other life priorities and is harming your health and relationships — despite efforts of managing your time for personal life and business and other ways to limit its impact in your life and — then it may be time for you to sell your business.
#2 Getting an Offer You Can’t Refuse
The Godfather references aside, you’ll have to expect other businesses or enterprising individuals to take an interest in your business, especially if it’s doing well. However, unless you’re keen on getting rid of it as soon as you can and you’re not particular as to how much you’ll be earning from the deal, you should think it over clearly. Evaluate the offer, negotiate for better terms, and make sure that you’re selling it under the best possible deal — not only to get the most out of the sale but also to avoid any post-sale regrets. It’s recommended for you to consult the deal with a professional to help you make the most out of it.
#3 Chronic Internal Disputes
Whenever there’s more than one person involved with the management and ownership of a business, you should always expect disputes. While some conflict is normal, if things go too far, or if the bickering becomes way too constant, the profit you may be earning may no longer be able to compensate for the stress you continuously undergo.
#4 There’s No One to Run It
If you’re thinking about retiring, or if want to go for a new/different/better venture, or you wish to focus on another existing business/job and you don’t have someone to entrust your business to, then selling it to an eager entrepreneur would be a better option instead of just closing down the business — that way, you can earn from the sale. You can see your business continuing to serve your customers, even without you behind the wheel.
It’s hard to let go of a profitable business, which is why it’s important to be aware of these signs so you can decide to sell your profitable business at the right time and without regrets.