Is your Business Performing Well? Here Are 3 Reasons Why Now Is The Best Time to Sell
Before you shoot the messenger, consider a few facts.
Firstly, the best time to sell a business is when it is doing well — nothing wrong with that. Secondly, three-time best-seller Seth Godin says that “winners quit fast, quit often, and quit without guilt.”
Thirdly, and most importantly, you’ll get more money from selling your business in its prime.
Would you buy a dead business? Or would you purchase one that can deliver immediately?
If the answer to the second question isn’t a resounding “yes”, it’s likely that your business has become your child.
Even if you could make $1 billion, a good parent would never sell their child. But are you a parent or a business owner?
A lot of critical thinking needs to happen if you want upward mobility in business. If selling your business seems dismal, maybe the following reasons can add a different perspective:
- Selling at the right time gives you leverage
Capital ventures are always on the hunt for profitable businesses and business ideas. If your business is profitable and has the potential to keep growing, you could earn a lot if you sell now.
The longer you take to get investors and potential buyers on board, the more likely it is for you to lose leverage as a business owner.
Studies show that many small businesses fail and that the average lifespan of a small business is 8.5 years.
If your business experiences an increase in profit after year 8, selling might be the best move to maximize your profits indefinitely.
2. Selling your business can help you reposition yourself
As said before, selling your business in its prime gives you leverage. It allows you to use the performance of your business as an asset to get you more money from your buyers.
This money can help you invest in other areas of business, whilst having a financial cushion on rainy days.
3. Selling your business can give you the funds needed to retire early
Everybody wants to retire early, but only a few entrepreneurs get the chance. Studies show that 80% of new businesses fail, while only 50% make it to year 5.
There is a slim chance that your business is going to help you retire early.
To do that, you’ll need to negotiate for a good price and keep a small percentage of the company.
If your business is in its prime, doing that won’t be hard.
When it comes to selling your business, you need to be careful. There are many losers in business — but if you consult with a trusted expert, you don’t have to be one!