Starting a successful business is an incredible challenge. It takes intelligence, craft, and skill, not to mention a motivated team and an inspiring leader. For some entrepreneurs building a thriving business is the goal, but for others, it is just the beginning.
If you are thinking of selling your business, it is all about timing. If you sell your business too early or too late, you may end up costing yourself a considerable amount of cash. Timing is everything, and below you can learn more about when you should consider selling your business to maximize your return.
Why Should You Sell Your Business?
Selling your business should not be solely a financial decision. You should only consider selling your business if you are no longer enjoying the day-to-day challenge it brings and you are ready for a change. If you still find yourself inspired and excited by your business, follow your passion and continue building your company!
Factors to Consider When Selling Your Business
If you are considering selling your business, you need to consider the following factors before ultimately making a decision.
Can You Retire After You Sell?
You need to take inventory of your finances and decide whether you have enough money to retire after you sell your business. If you do not have enough money to retire, what is the plan? Will you use the money to start a new business? If you are starting a new business, are you sure you are ready for the grind and hard work that comes with starting from scratch? You need to talk to a financial advisor about all of these questions before you decide whether or not you are ready to sell your business.
If You Are Retiring, What Will You Do Next?
If selling your business allows you to retire, what is your retirement plan? Do you have any hobbies or interests you are going to pursue? Do you have a long trip you have been aching to go on for years? Like any other endeavor in life, retirement takes some planning. The last thing you want to do is sell your business and then find yourself bored and aimless in retirement, itching to get back to work.
Do You Have a Succession Plan?
Since you worked so hard to build up your business, it would be a shame to see it all come crashing down the minute you sell. That is why you need to make sure you have a strong succession plan and transfer of power in place before the sale is finalized. Make sure you have the final say regarding who will be the next CEO of your company and fight for the people you believe in. Even if you sell your stake in a company, you will still be invested in the success or failure of the business for years to come.
What is the State of Your Industry?
Take a step back and look at the big picture perspective of your business. Is it in an industry that is growing, or an industry that is in decline? It can be hard to forecast the future of any industry, but if you can nail the timing and sell before an industry-wide decline, you will be in great shape!
Expert Advice on When to Sell Your Business at Bellini & Riddle
If you are thinking of selling your business, you need to talk to a business consultant to help you determine the best path forward. Deciding whether or not you should sell your business is a tough decision, and talking with an expert can help clarify your thinking and point you in the right direction. Once you decide to sell, the next steps can also be a challenge, and Bellini & Riddle can help you through every stage of the process. For more information or to request a consultation, please contact Bellini & Riddle today.