You have put in a lot of work into your company over the years, and it has rewarded you with a life beyond your wildest dreams.
Recently however, you have begun to entertain when would be an appropriate time to sell your business.
This article will help you recognize when it might be a good move to offload your company to someone else.
Before we get started however, one thing: while the points that we’ll talk about are good indicators that you may want to think about selling your business, there is no substitute for consulting with seasoned professionals first.
By talking to the experts at companies like Generational Equity, you will be privy to the kind of advice that will help you make the right decision in the end.
With that in mind, let’s talk about the signs that will tell you when the time is right to sell your business.
Does your level of exhaustion overwhelm the passion you have for the business?
In order to achieve successful in business, you need to be passionate about something. It can be the core of what your company is about, or it can be the things that it enables.
For example, if you love fishing, being able to sell rods, lures, and other equipment to fellow enthusiasts will make the long hours and bad days involved in running a fishing-themed retail operation worth the trouble.
Another example: You run a box factory, and while that may sound boring to an outsider, the revenue it brings in enables a lifestyle that you wouldn’t otherwise be able to afford as an employee.
However, if the level of exhaustion that you are currently feeling is overwhelming the passion that your business would normally stoke, it might be a sign that it is time to cash out.
Has the company outgrown your ability to contribute value to it?
In the beginning, the entrepreneur pours everything they have into the business that they have created. The company rises on the back of their hard work, and everything is great.
When it grows to a certain size however, it may require leadership and skill sets in areas that its founder lacks.
When a company founder senses that they have outgrown their usefulness to the business that they helped build, it may be time to consider selling to an entity that has the resources to take it to the next level.
Is there a looming trend that may threaten the long-term viability of your business?
Being able to look into the future and project the long-term viability of a business is a skill that all aspiring entrepreneurs should seek to hone.
Having said that, if you own a business presently, and you can foresee a trend that may cause your company’s revenues to stagnate or decline in the near future, it might be a good idea to start looking for buyers.
The ongoing exponential growth of high technology, the aging of Boomers and the rise of the Millennials, and the effects of automation on the consumer economy a few trends that you should consider when you are trying to determine whether to hold or sell your business.