Sometimes, business owners have no choice but to sell their business. Many times health, retirement, and relocation are big factors. Sometimes an owner’s circumstances change or there is some other compelling reason that makes selling the only option. In those cases, it’s not a matter of when to sell, but rather, how to get the most out of the sale.
For others, the decision is not so clear-cut. Sometimes, it creeps up on you and you start to wonder how much the business is worth. At other times, you’re ready to try something new but not sure how to move on. Or maybe you’re starting to think about retirement. Even if the motivation is there, it can still be hard to make that final decision to stay or sell.
This all begs the question, “How do you know when it’s time to sell your business?”
Three Conditions That Make It A Good Time To Sell
Over the years, we’ve discovered three conditions that, when aligned, make it the right time to sell a business.
1. There is a reason to sell.
2. You are confident a sale can be made that meets your objectives.
3. You are emotionally ready to sell.
If your situation meets all three of these criteria, now might be a good time to sell your business.
1. There is a Reason to Sell.
Having a reason to sell might be just the motivation you need to start the process. If you’re not forced to sell, suitable reasons might be: personal, investment-related, or strategic. Personal reasons usually don’t have an economic or business-related reason to sell. They may be forced by a divorce or disagreement between the partners/owners, retirement, or even the feeling of being burnt-out can all be compelling enough reasons to sell. Investment related reasons to sell may be a need for cash, a need to minimize your area of risk, or you may see it as a good time to sell for a profit. Strategic reasons for selling a business may be a need to raise capital for other investments, pursuits, or expansion. You might sell it to gain access to a new technology or new customers.
2. You are Confident a Sale can be Made That Meets Your Objectives.
No one wants to attempt a sale if they don’t think they’ll be able to attain their objectives from it. Why spend the time and money needed to advertise and promote the sale if you have no confidence it will come to fruition? To ensure a sale, you’ll need to have realistic objectives, including a fair selling price. You will also need to make sure the current internal and external business environment is favorable to the sale of your business and that your business is ready to sustain the scrutiny a sale will create from buyers.
3. You are Emotionally Ready to Sell.
Don’t underestimate the emotions that come with selling your business. There will be emotions one way or another and they can have a huge impact on your decision to accept or decline and offer. Emotions are much stronger in solo entrepreneurs than in owners who went in on the business as a partnership. Selling can affect your lifestyle, your identity, your finances, even your family life and social circles. In short, it will change your life. Come to terms with these issues before putting the business up for sale so you aren’t having second thoughts when there’s an offer on the table.
Sell A Business In Florida With Crowne Atlantic Properties
If you’re thinking about selling your business and want to learn more about the process, get a business valuation, or list a business for sale in Florida, contact Crowne Atlantic Properties at 407-478-4101. Our business brokers would be happy to help you.