“Understanding your objectives is vital in achieving a deal that is right for you.”
Financial incentives notwithstanding, deciding when to sell your business is ultimately a personal decision. External factors tend to become more important when you get further into the process – but the main thing is to be clear about why you want to part ways with your business.
Being honest about what you want will make you happier – and in many cases – prove more profitable. You can’t put a value on the thrill of a challenge (although you can certainly build equity in new ventures!)
In my experience, the following represent the five most common reasons that might persuade you to make the decision to sell:
1. Financial Security for You and Your Family
At some point, most people look at their personal situation and think about the risk they are taking with their future. A sale provides a ‘nest-egg’ for whatever might be around the corner.
2. Financial Independence
The financial independence, which can be achieved through the sale of your business, can open up a whole new world of choices – business or otherwise.
3. Entrepreneur v Manager
As your business grows bigger, more time is spent managing people and issues such as HR, Health and Safety etc. This leaves less time for those creative challenges you enjoy. (However, if managerial headaches are your only reason for selling an otherwise stimulating business, it may be a good idea to explore the time saving opportunities presented by outsourcing.)
4. New Challenges
Re-setting personal goals, and facing new challenges, is quite normal for entrepreneurial people, especially after many years of successfully developing your business.
5. Personal Time
Entrepreneurs often devote their lives to growing their businesses. There comes a time when you need to redress your work/life balance, however, and a sale creates a great opportunity to focus on personal time and enjoy the fruits of your success.
Ready to sell? Make sure you get the most for your business: Top 10 Things That Add Value to Your Business