4 Reasons, this may be right time to sell your business
It is always critical to choose between selling and keeping the business; however, many factors may end up reducing the price of your business in future.
Here are the 4 reasons, that ‘now’ may be the right time to sell your business:
1. Drop in Turnover
The most disappointing impact could be fall in turnover & these days many factors can play part into it. Just like, it is not always possible to predict the economy; a sudden change in dynamics of industry is also not uncommon these days. Consider the impact of Uber (Cab System) on a traditional taxi services. Sometimes, it is not possible to compete broader change, especially if it is welcomed by audience globally.
More and smarter competitors are entering into market, providing unthinkable solutions. Let’s talk about introduction of food ordering and delivery services i.e. Menulog, Deliver Hero, etc – these services have empowered many small takeaway shops to compete against big restaurants and chains like Dominos and Pizza Hut. In past, pizza was pretty much the only online home delivery option. Whereas, now customers of pizza delivery service have many more choices and they can get almost all kinds of food, delivered to their home. What will happen, if a new competitor shows up in your industry, changing dynamics of the industry competition, similar to this?
3. Online Surprises
Customers are now very comfortable with online alternates. Unlike past, any new offer can click quickly and customers don’t think twice to go for it, just because it is an online offer. There were times when shopping malls were the place to be. However, people now avoid going to shopping malls altogether; to avoid the hassle of driving, parking, and walking from one corner to another of the mall. They now love to do shopping from their couch, at 11PM. Online alternate can’t be introduced in your industry? DVD rental shops thought the same at one time, but change was so sudden that not even one DVD rental shop survived in the market.
4. Investment in Technology
Staying longer in business game requires a lot more investment in technology. Since Gloria Jeans introduced coffee ordering app, all other coffee shops around felt the heat. Customers never liked to wait in the queue watching barista to make coffee for 10 other people, in front of them. So it took no time for them to adopt it. Same was the case with apps in service station industry; people loved the idea of locking in the fuel price for them.
Things being what they are, when is the best time to sell? Perhaps when the owner first decided it might be time.
Ready to sell? Contact CBC Business Brokers Sydney today on 1300 661 498 for a free strategy session.
CBC Business Brokers Sydney
Level 34, AMP Centre,
50 Bridge St,
Sydney NSW 2000
T: 1300 661 498