As we age and develop, it’s only natural for our interests to change personally and professionally. Business owners, especially serial entrepreneurs, undergo a similar process to employees who seek a job or career change. But, rather than updating resumes and preparing for interviews, their growth manifests through new entrepreneurial endeavors – and often, that means letting go of ones that no longer serve their interests. If you feel you’ve hit a plateau within your current operations, it could be time to move on. Be wary of any of the following six telltale signs you should sell your business.
Most long-term entrepreneurs don’t solely operate in a unilateral space. There are plenty of reasons one may opt to exit their small business and pursue new opportunities.
Not every successful business endeavor is ever-green. If you feel your company is beginning to outgrow demand from its customer base due to changing market trends, it could be time to move onward. The trick is to sell while you’re still near the peak of your game, increasing value to a potential buyer. Higher valuations translate to higher earnings for a seller. If you play your cards right, you can make enough to live comfortably or invest in a new business altogether.
Market demand could be on your side, and you may still wish to cash in on your hard work – and that’s okay! If you’re presented with the right offer, you’ll have to decide whether or not you’re comfortable leaving your brand in someone else’s hands. But, this kind of monetary value and newfound freedom can allow you to retire or pursue other endeavors.
Let’s face it – entrepreneurship isn’t a walk in the park. Even the most resilient can feel overwhelmed by the day-to-day challenges of owning a business. While stress is normal and to be expected, it can quickly overrule the joy of running a small business. If your business is taking a significant toll on your mental or physical health, it could be a sign that it’s time to move on.
As your interests and perspectives change, your skillset should also evolve. It’s common for entrepreneurs to feel they’ve hit their stride while facing the inevitable plateau in their business. If reinvigorating or reinvesting your current model doesn’t sound appealing, you may have expended all the energy you have left for this particular endeavor. Now could be the time to walk away and refocus your skills on other goals you’re more prepared to achieve.
Businesses are an ongoing investment, and to an extent, feeding in can be reasonable. In the early years, debts are expected. But, you have to be able to recognize a business that is at the brink of success and one that isn’t worth dumping more change into. Tapping into your retirement accounts and savings isn’t a good sign if you’re second-guessing yourself already. Your small business should evolve financially, or you could be falling into a money pit.
Are you daydreaming of blue skies and sandy beaches? If retirement is nearing your future, you should start making arrangements to exit your business. Recent reports suggest 78% of business owners have no formal transition plan. Without a clear business sales plan, you’re leaving money on the table and probably aren’t receiving as high of earnings as you could.
Entrepreneurship is an ever-changing journey, and it often doesn’t make sense to stay in one space indefinitely. If you’re wondering whether it’s time to step back and refocus your energy elsewhere, our team can help. Locate your nearest Sunbelt Business Brokers office and schedule a consultation to discuss the best interest of your operations.