Whether you like it or not, there will always come a time when you have to say goodbye to your business. But, how will you know if selling your business is the best decision? Here are some telltale signs that you have finally reached the point of no return.
There’s a Lucrative Opportunity Waiting for You
Selling a business can be the result of a positive cause. There are times when an exit strategy is required since there is already a lucrative offer lurking in the corner. When the market gets frothy and there is a profitable opportunity thanks to the hype that surrounds your industry, you can decide to sell your business.
For instance, if you are running a budding innovative social media site that still find it hard to generate profit and a giant like Facebook knocks at your door, this is an offer that you should seriously consider. Here, a strong sense of humility and realism is required. If your company is not yet worth a billion dollars but you already received a multi-million offer, this is something you cannot just turn away.
Trends are Moving Against Your Business Model
When you notice an up and coming megatrend that can make your business marginal or irrelevant, it might be time to consider making an exit plan. It might seem obvious yet this is a bitter pill you need to swallow. Considering the existing technological trajectory that the society is currently moving along, all businesses are practically at risk. If you have a personal speed dating service, the existence of Tinder is a real threat. If you run a boutique hotel, your ears might perk up at the mention of Airbnb. You have to keep an eye out for such trends. While you can instantly recognize a change coming, chances are you have limited time to prepare for it.
The Business Has Already Outgrown Your Skill Set
There are times when, as the principal or founder, you feel that you are no longer an asset to the business as it starts to grow. It is another bitter truth you need to accept yet the best entrepreneurs are outright honest to themselves about this.
Many successful entrepreneurs are excellent salespeople. The moment a business goes beyond $5 or $10 million in yearly revenues, depending on your business model, it also needs leadership in various areas. It is best if you have a good vision of recognizing it during the lifecycle of the business together with the humility of accepting and doing something about it. However, you also have to take note that there are entrepreneurs who managed to learn and grow together with their business.
You’re No Longer Happy
The last, but definitely not the least sign that it’s time to sell your business is when you no longer find the enjoyment in running it. There are instances when this unhappiness results from personnel concerns. Compared to the problems when you were still a startup, the issues you are dealing with have become less challenging and fun. If you no longer enjoy it, there’s no more reason to hold onto it.