Your business is your pride and joy. But, inevitably, the time will come to sell it. You’ll get to the point where either it’s not working for you, or the economic incentives to pass it onto someone else are just too high.
In this post, we take a look at some of the telltale signs it’s time to let it go and move on with your life.
You’re Going To Retire Soon
You don’t have to sell your business on the day you retire. You should think carefully about how much you can get for it for at least five years before you throw in the towel.
Remember, the market price for your business will fluctuate tremendously over time. Savvy business owners often take advantage of high prices to sell sooner rather than later, if the opportunity presents itself.
The Valuation Is Through The Roof
If your business valuation seems too good to be true, it probably is. Sky-high prices don’t last long in most industries.
The advice here is to strike while the iron is hot. Even if you don’t intend to give up work, you should still sell. Once prices normalize, the opportunity could disappear and might never come back again.
You Have A Lot Of Debt
Plowing other people’s capital into your business makes sense for the first few years. After all, it takes a lot of money to get companies off the ground. However, if you find that it’s still a money trap after five years, it might be time to hand it over to somebody else. This way, you can keep the liabilities on the company balance sheet, and take out any equity you own. Then all you need to do is let someone else deal with the problem.
You’re Burned Out
Burnout is a major risk for entrepreneurs. Over time, you invest so much of your time and energy into your business that it drains your strength and leaves you feeling exhausted and cynical.
Burnout often picks up steam when you least expect it. You might think you’re fine and then, one day, you find that you don’t have any motivation to go on.
If you find yourself in this position, sell. Burnout is often a symptom of long-term stress and overexertion. Most entrepreneurs need to take a few months off just to take care of themselves and their bodies.
You No Longer Feel Creative
Creativity is at the heart of entrepreneurial work. It’s your job to see things from a new perspective.
Unfortunately, entrepreneurs often wind up going through the motions. They get into situations where their entrepreneurial talents are going to waste. This then leads to a reduction in energy, output, and excitement.
Selling your business and starting something new can be a great way to get out of this cycle. If your brand no longer ignites your passion, then your best bet is to hand it over to somebody who cares about it and move on. If you’re forcing it, you’ll struggle to make any progress.