At some point or another, every business owner asks themselves: is it time to sell my business? Knowing when to sell (and how) can have a huge impact on the proceeds from the sale. It’s not just a matter of knowing if it’s a good time to put a business on the market, though. No matter what the current market looks like, it could be a good time to sell. Here are five good reasons to sell your business. Some of the most common reasons business owners decide to sell include the following:
Burning Out or Ready to Let it Go
Burn out is one of the most common reasons to sell. After running a business for a period of time, especially if it’s doing well and you are incredibly busy, it’s possible to start to feel burnt out. Beyond just a feeling, though, burning out can cause physical symptoms. Business owners who are starting to feel burnt out may feel tired most of the time, experience frequent illnesses due to lowered immunity, or have frequent headaches. They may also notice they have a change in appetite or sleep habits.
When burnout happens, it’s time for something to change. Burning out can have a serious impact on a person’s health, if nothing changes. For many business owners, change can mean selling their business. Though they may open a different business, take a break for a while, or try something else, by selling the business, they get the break they need to recover.
New Interests to Try Out
Another common reason for business sales today is simply the desire to try something new. Even if the business is doing well, it can become tiresome or boring to continue providing the same products and services day after day. A change in scenery, new products or services, or other new interests can pave the way for a new business. Selling the existing business can be just what’s needed to dive into new interests and see where they lead.
Every business needs funding to get started. When there are new interests to try out, money is needed to launch the business. A business owner can sell their existing business and use the profits for the new one. Once the business is sold, the money is theirs to use as they wish. If they’ve found a new interest and want to try out a new type of business, they’ll already have some or all of the startup funds they need.
Ready to Retire
At some point, spending relaxing days at home sounds a lot more fun than going to work every day. Business owners may find they’re ready to retire if they’re facing burnout, if they’ve been working for many years and are starting to get older, or if they want to retire early and start enjoying traveling and other fun activities. While it’s not always easy to tell when it’s the right time to retire, for those who think they’re ready, selling the business is the first step.
Retirement doesn’t have to mean slowing down. It can mean having more time for the things that really matter instead of spending as much time as possible helping the business grow. When it is time to retire, the proceeds from the sale can help fund the retirement. Money will be needed for daily expenses, travel, emergencies, and more. By selling the business, it’s possible to have a nest egg and start enjoying retirement.
Moving to a New Area
Moving may become necessary at some point. A business owner may want to move closer to their aging parents, move to another location for health benefits, or move just to have a change of scenery. No matter what the reason is, the business owner must decide if they want to move the business with them or if they’d prefer to sell the business and try something different in the new location.
While it is possible to move a business, there are times when it might not be advisable. If the business is location-specific or there may not be enough clients in the new location, it may not be a good idea to move it. Even if there are opportunities in the new location, it may not be easy to move the business or worth the effort. Selling the business is a way to move without worrying about the downsides, and the funds can be used to start a new business once the move is complete.
Business is Doing Fantastic
It’s easy to think about selling when the business is not doing well. After all, it can be hard to come back from a decline, if it’s possible, and doing so can lead to burnout as the business owner works extra hours to get everything moving again. It can also end up costing a lot of money to help the business turn around, and it may not be as successful as hoped. Something many business owners may not realize, though, is that the best time to sell is when the business is doing well. Why? It’s worth more.
When a business is doing fantastic, buyers are going to be more interested in it and ready to pay more to purchase it. The buyer knows they’re walking into something that’s already successful, so they won’t have to do a lot of work to turn it around. The business will likely sell faster if it’s doing well, and since the business owner is likely to get more money from the sale, they will have more funds to use for whatever they decide to do next.
It all boils down to whether you’re ready to sell. Whether or not one of these five good reasons to sell your business applies to you, if you’re starting to feel it might be time to sell and move on to something else, now’s the right time. Contact CGK Business Sales to learn more about what selling your business incorporates, how much you could get when you sell, and how they can help. Start today, and you’ll be well on your way to the next adventure. If one of these five good reasons to sell your business applies to you, let’s get the conversation started!