Top Reasons to Sell Your Business
July, 2024 by Nubia Rojas
Selling your business will be one of the most important financial transactions in your life. It’s critical to carefully evaluate your goals and objectives when selling your business. In this blog, we will take a closer look at the top reasons for selling your business.
Timing
The first and most important factor in making the decision to sell is timing. When is it ideal to sell? Ideally, you will have developed an exit strategy ahead of time, and your decision to sell will be based on key performance indicators that your business has achieved or specific life goals. A planned sale will yield the best possible outcome for the sale of your business, putting you in the strongest position. That said, life happens, and sometimes you may need to sell the business ahead of your planned exit strategy. For example, an illness may necessitate the sale.
Lost Passion
When a business owner has lost passion for their business, it might be time to consider selling. Without passion, a business will not perform optimally, and it becomes increasingly difficult for the owner to get up every day and apply themselves to the task of growing their business. They may already have ideas about starting a new business or moving to a different area.
Obligation
Are you still running the business out of obligation to another party, maybe a business partner, or even a parent from whom you inherited the business? If you’re not personally invested in the business’s growth and success, things start to become mundane and stale, and you find yourself wishing you were doing something else. On the flip side, it could be that you don’t want to burden your children with your business and would rather sell the business now to give them the freedom to forge their own path.
Control
Does your business feel out of control? Do you feel like you’re working just to pay the IRS, insurance companies, or your employees, with little left for you? Possibly government regulations and policies have made it harder to run your business, or in some cases, these policies could improve your business’s prospects, and you might want to sell now to capitalize on the availability of businesses looking for a business like yours.
Money
The impact of money on a business owner’s decision to sell may take many forms. It could be that your business has done well, and you are ready to capitalize on your success. Or maybe the business is not making enough money to support itself and you and your family, so you decide to sell to try a new venture. Alternatively, it could be that money has become less important to you, and you’re looking to improve your quality of life, take more vacations, spend more time with family, etc.
Life
Retirement, health issues, divorce, death, lawsuits, and more. Businesses are impacted by major life events, and sometimes the business has to give way to accommodate changes in your health, the death of a key employee, or the settlement of financial obligations created by divorce.
Opportunity
You may have the opportunity to start a new venture, one you believe can yield greater results. However, to take advantage of such an opportunity, you may need to sell your existing business to free up the capital or time required to make the new opportunity a success.
Why Work with a Business Broker to Sell Your Business?
When the time comes to sell, you are going to need an experienced business broker who will help you get the best price and terms, and market your business properly to find the best-qualified buyers. With over 20 years of experience in real estate and business, Nubia can help you navigate the complexities of selling your business. She adheres to a strict code of ethics in the processes of buying or selling a business. Nubia can help you get a clear idea of the honest salable value of your business in today’s marketplace and provide many strategies for accomplishing this task.