When is it Time to Sell Your Business?

When you own and operate your own business, it’s not always easy to let go of. Even if it is easy and you don’t feel much of an attachment to your business, it’s not always easy to tell when it is time. Some people might say, “When you know you know,” but that old adage doesn’t apply unless you know how to know when it’s time to sell by familiarizing yourself with the key indicators.

Is your business in a position where you are struggling to grow it? Is it in a good position where it might be desirable for a new owner to seek it out? Has there been a major change in your personal life that doesn’t allow you to take care of the business in the way that you should? Does the business no longer align with your personal goals? These and many other questions are important ones to ask yourself as a business owner on a regular basis because you may be more ready to sell than you initially thought you were. In today’s article, we will be discussing the top five signs that indicate that your business is ready to sell.

Business Broker John Howard is part of Alliant Capital Advisors and has helped hundreds of business owners throughout his career determine if and when they are ready to sell their business. Let’s look at the key indicators that let you know that you’re ready!

Sign #1: Your Business & The Market are Thriving

Well, if your business is doing well and the market is favorable for your industry right now, wouldn’t it make more sense to keep your business? As a matter of fact, this is actually the best time to sell! When your business is thriving, it makes it more desirable to interested buyers and makes it an easier selling point. When you try to sell in a year where you have a dip in revenue or profit, you set off a lot of alarms. According to Benchmark International, more than 50% of business owners try to sell their business on their own even though many of them fail. Even if your business is thriving and it’s a great time to sell, be sure to work with a business broker so that you can position your business in the best possible position for a successful and profitable sale.

Sign #2: It’s Not Aligned with Your Personal Goals

Determining when to sell a business is not always about making the best decision for the business, sometimes it’s about making the best decision for yourself. While this could come with the risks of selling at an unfavorable time for the market or selling for a loss, if the business is not aligned with your personal goals it is time to sell it; keeping a business without having a passion for it is a recipe for further decline in the growth and success of your business.

Sign #3: You’ve Received an Offer You Can’t Refuse

If you have received any kind of offer, it means that your business is desirable and that somebody else wants it. This can help you to determine when to sell your business because, if the offer is so good that you can’t refuse it, then that probably means that it’s time to sell. With a good enough offer, you will then have the means you need to pursue your next adventure and you don’t even need to go through the process of looking for a buyer.

Sign #4: The Market for Your Industry is Declining

In the first sign we mentioned how a thriving market means it’s a good time to sell, but contrary to what you might expect so is a struggling market. Especially if your specific business is still thriving but your market is on the decline, you should consider selling. This is a sign that your business might be next and it’s best to get out while you still can before the competition in the industry gets even tighter.

Sign #5: You’ve Fallen Behind the Times

It’s not always easy to admit, but it happens to all of us in one way or another: we fall behind the times. Whether you simply don’t like the newest music on the radio or you don’t know how to operate the latest technology, it can be frustrating and upsetting to admit. However, in a business environment it is crucial to come to terms with this reality sooner rather than later and to take action once you realize it. If you have fallen so far behind the times, you won’t be able to keep up with your competitors in the industry. If you want to know when it is time to sell your business, it is not as soon as you fall behind your competitors, but rather as soon as you realize you can’t catch back up.

Need Help Determining When to Sell Your Business?

After reading this article and carefully examining the signs, you should be able to determine if it’s time to sell your business. If you think you’re ready to sell, or if you still need help deciding whether or not it’s time, then you should reach out to a certified business broker who can help you determine if it’s the right time, prepare for the sale, find interested buyers, and negotiate the sale.

If you think that it’s time, then schedule a free consultation with certified business broker John Howard today for expert assistance. He will help you prepare your business for a transition in ownership, will help you find a buyer, and will negotiate on your behalf.

Thank you for reading!