No one starts a business with the sole intention to eventually sell it to the highest bidder. Most people put years of blood, sweat and tears into building their companies. You grow attached to your business and establish strong bonds with your employees that rely on you for their livelihoods. However, due to a number of circumstances, like the economy, changes in the market place and sometimes age, there might come a time to let go. Like anything you’re attached to in life, it’s hard to know exactly when. It can be the toughest decision for anyone to make, but the most important thing to realize is that sometimes selling your business might open more opportunities to explore new paths in life, whether they be professional or personal. Here are a 5 signs that it’s time to sell your business.
- Sometimes people start a business during a time when a certain market might be on an upswing. For instance, many businesses in the music industry faced a deep quandary when the market for CDs dipped to unviable levels, versus the strong demand for digital media. No matter what, the market place for various industries, like technology and fashion, are fickle. It’s hard to have long-term projections to protect your business in the future. Many companies in this circumstance are faced with the option to sell or evolve. Many businesses choose the former, because it is far more cost effective than a massive overhaul.
- Slowed business growth is another sign that it might be time to sell your business. If you see any lags in revenue over a sustained period it might be time to find a buyer for your company. Chances are, if the dip in cash flow is starting to affect your ability to effectively run your business, the smartest thing to do is to close up shop. You don’t want to face defaulting on loans, missing payments to employees and not meeting demands of customers all because of a little pride – it will only hurt you more in the long run.
- Another sign that it might be time to sell is simply that you are getting older. There comes a time where you might want to retire and take advantage of the rewards of all your hard work over the years. This is isn’t a sign of failure, but of acceptance.
- Mounting loans is another sign that you should sell your business. There are a number of ways to sell your company as well as your debt so that you can walk away clean. Structured settlement loan repayments might be the most cost effective, long term way to pay your debts, but agreements can also be made with the purchaser of your business to repay the loan in one lump sum.
- Lastly, one of the biggest signs you should sell your business is if someone makes you a deal of a lifetime. Some deals are just to tempting to not turn down. Grab your calculator and do the math, if someone offers double or triple what your company is worth, you should probably sign on the dotted line right away, but first talk to your financial adviser to see if you can get the best deal for the business you put your heart and soul into building.