Even the best fall down sometimes, and this applies even to entrepreneurship. After years of watching your business grow, there will be a point when you have to say goodbye to it.
What are the telltale signs that it is time to sell your business?
Risks are Getting Bigger
You are lucky if your business is successful because statistics reveal that 80% of small businesses fall during the first one and a half year of operation. But, your luck may run out without you knowing. Maybe there are changes in consumer trends, or you are overwhelmed by the tax burden, or the shift in your industry isn’t in your favor. Running a business is already a risk itself and many things can end up working against you.
When the horizon is filled with storm clouds, getting to safety should be your priority. Listen to what your gut tells you. the tightrope you are treading on might not be able to withstand the market pressure for as long as you think.
You Feel Exhausted
Not all people have been built to be an entrepreneur for the rest of their lives. Maybe you wish to pursue another career. Maybe your heart tells you to follow your dreams of becoming a photographer. No matter what the reason is, if you feel burnt out or exhausted, it is probably high time to sell your business.
Contrary to what most people think, running a business is not all glitz and glamour. You probably assume that being a business owner means cashing checks and rubbing elbows with high caliber CEOs. However, the daily reality of entrepreneurship can be very stressful and grueling. After some time, it is just natural to experience attrition.
You have to know when to throw in the towel. If the timing is perfect, there is nothing wrong with quitting. If you are dealing with burnout, you will gain more if you sell your business instead of toughing it out. Even if you reached this point because of your strength and hard work, after awhile, you don’t yourself or your business any favor if you stick it out because of the wrong reasons.
Higher Business Value
An impending disaster might be a good reason to sell your business but what if the exact opposite happens?
If you were prudent in building your business and your operations were frugal, chances are your business has higher value now compared to your initial investment. If this is your situation, it is possible that other entrepreneurs wish to acquire or purchase your business.
For instance, if you were running a small business that fills the gap in a certain niche, you can earn a good profit if you sell it to a bigger company that covets your brand equity, product, and customers. A big time acquisition often requires you to be involved for a particular timeframe before you leave. However, this opportunity is the best way for successful entrepreneurs to make cash out of their hard work.