Maybe It’s Time to Sell Your Business

Has it ever occurred to you that maybe its time to sell your business?

Admittedly, this is a thought that crosses a business owner’s mind every once in a while for a myriad of reasons. If you have been a business owner yourself, you know for sure that you sometimes get that feeling of being burnt after a long time of a successful business run specially so after going through a series of disappointing debacles. The temptation to sell your business at this time when you feel burnt is rather strong.

There are times too when you are driven into a situation where you are left with no choice but to sell your business like in cases of a divorce, or a dissolution of the partnership, and even the death of a major stockholder.

There are also times when you are tempted to sell when the overall economic climate is so good and windows of opportunities suddenly open up to you and tempt you to do so for a hefty profit.

Whatever the reason may be, you need perfect timing when you decide to sell. Easier said than done? Well, theoretically, it really is easy. According to the best business practices, the best time to sell your business is when the business is doing well!

It is a lot easier to sell a business that is doing well than one whose sales is spiraling down. The successful track record of a thriving business serves as a magnet that attracts buyers. You can sell with ease when it is generating profits because people start noticing your place. Some may find this rather ironical. In the first place, why sell a thriving business enterprise? My answer is quite simple and forth right – you will get a premium over the actual net worth of your business. You need not even worry about losing the opportunity to earn more from your thriving business. You will be able to offset this with the premium price you will get from the property if you sell at the time it is thriving. It will not only attract more interested buyers but will also drive the price of your property up. On the other hand, if you sell a business that is on a down turn, you’d have a hard time finding buyers and you may have to lower your selling price to make your offer more attractive.

It is often hard to part with a business that you have nurtured for quite some time. Even harder is to put your business up for sale at the time it is peaking! But if thoughts of selling the business do cross your mind, step back a little and do some soul searching by asking yourself these questions.

  • Are you psychologically and emotionally ready to part with your business?
  • Is the current business climate perfect for the task at hand?
  • Will you be able to reach your financial objective if you put your business up for sale now?

If your answer is no to any of this questions, then strike off the thought of putting your business up for sale from your mind. Instead, pour all your effort and resolve to growing your business and wait for some other opportune time to sell your business.