You have built up your business from scratch and you go to work everyday in your business, you have a routine, you go home at night, nothing new or exciting happens, is it time to sell your business? If you do not look forward to going to work everyday, is it time for a change? How do you know when it is time to sell your business?
Here are a few questions that you can go through to see if it is time to sell your business.
- work is a routine, not exciting
- you do not look forward to going to work
- work is very stressful, the business is not doing well and it is a financial struggle, creditors call daily but you need more capital and you personally do not have more to invest in the business
- the bank is closely monitoring your business because you are offside with your banking covenants and it impossible to rectify them in a timely manner
- sales are declining and you are trying to obtain some payment for what business is left before the business becomes worthless
- the business is growing so much that you are unable to keep up and do not have the skills to take it to the next level
- you are finding it difficult to find the right staff to help take the business to the next level
- the business has peaked and sales will not increase very much in the future, the business is very mature and it runs itself, you are no longer needed day to day and you do not want to keep taking holidays
- the business is operating without you and is successful but you do not have enough capital to buy another business
- you are getting old and your speed of doing things is slowing down, part of the work is physical and you can no longer physically do all the functions required in the business
- you have no succession plan, no kids who want to take over the business
- you have a medical condition, such as heart disease and your doctor has told you to slow down and reduce your hours at work but you do not trust the staff to operate the business
- you are too insecure, you have not taken a holiday in 15 years because you do not believe that your staff who have been with you for 15 years are capable of running the place without you (this is not exaggerated, I am aware of one business like this)
- the real estate owned by the business is worth many times more than the business is worth (i.e. car dealerships have a lot of land which could be redeveloped into houses if they are located in a prime area
This is only a partial list but these are some of the factors which you may want to consider if you own your own business.