Building a business is no small feat, regardless of whether it’s from the ground up or if you bought the business, too. So, when you’ve invested so much time, money, and effort into the business, it can feel a bit conflicting to sell, but most of the time, it’s completely necessary.
In this article, we’ll go through the different scenarios in which it’s a good idea, sometimes vital, to sell a business.
You are retiring retire
One of the most common and best reasons why people usually sell is because they’re ready for retirement! After all the years in the business world, selling yours is a bittersweet moment because often your financial security for retirement hangs on the sale – so it’s vital to fetch the right price. It’s also difficult to let go of your business after you’ve had it for so long. Even when you’ve got a buyer lined up or a family member or business partner, selling your business is also about continuing your legacy, and in order for it to do well after you’re gone, it needs to go to the right buyer.
You want to pursue new opportunities
Selling your business doesn’t always have to happen just because you’ve reached the end of the line, but it could also be that you have other opportunities that you don’t want to turn down. This could be that you’ve been offered a job, or maybe there’s a new business venture on the horizon. If you’ve got opportunities lining up and your business is holding you back, it’s completely viable to sell.
You are relocating
Modern technology has made it possible to work from just about anywhere, but running a business generally requires you to be around where it’s based. If you plan on relocating unless your business is based completely online, odds are that you’ll need to sell. This is especially true when you’re running a service-based business. Businesses require committed owners who are there to prevent things from going wrong, stop things in their tracks if something bad does occur, and build good relationships with customers, clients and suppliers. Unless you factor in the costs of travel or can be there in a short amount of time, it’s better to sell.
Your business is in high demand
When your business is at its peak, and you’re receiving tempting offers left, right and centre, you don’t have to sell, but there’s a good chance that this will be a prime time to fetch an incredible price. So, if you get an offer that you feel will set you up for life or is more than satisfactory, then go for it! Just ensure you work closely with a business broker to ensure it’s worth it.
The business is not performing well
The reality of running a business is that 60% of businesses fail within the first three years of opening. This means a good majority of small business owners need to fact the fact that there’s a good chance they’ll need to either sell or foreclose to make it out without getting too scathed. Should your business not be performing well, it’s a good enough reason to sell so at least you can make some of your money back.
You want to capitalise on business
When you can see that the market isn’t in your favour and you hit a good performance streak over a year or two, a good business person will be able to see the opportunity to sell while things are good. So, if you want to capitalise and sell in the hopes of getting a higher valuation, rather avoid the risk and sell while things are in the green.
Personal or health issues
As a small business owner, you need to be a lot of things, but you’re not invincible. Ultimately, if you go down unless you’ve got the right contingencies in place, your business will suffer. So, if you experience poor health or personal issues, it could be best to sell the business so both you and your business can carry on.
Who can help sell your business in Melbourne?
Many business owners try to sell their businesses on their own, and while some are completely capable of doing so, in most cases, it’s best to seek the help of a business broker. The right business broker will help you with valuation, getting everything in order, finding the right buyer, and so much more. Interested in finding the right business broker and what they can do for you? You can find one at Lloyds Brokers in Melbourne.
Final Thoughts
There are many scenarios in which selling your small business is the right thing to do and can benefit you greatly in the long run. Even when the reasons for selling are valid, and your business should sell for a good amount, there’s always a chance you sell for less than what it’s worth. So you need to be as strategic with your business sale as you have been with every other aspect of running it.
