Many Business Owners are maybe thinking about when they should sell their business? Whenever any business owner considers selling his business, the reasons are not always financial. Usually they are looking for a better opportunity.
Below are 3 considerable reasons when thinking about selling your business.
Whenever you get a chance to have liquidity in your business, you should consider it seriously. The reason is that running a business is always risky and the longer you stick with it the bigger chance you have of failure. Though the business has value in it but it has no liquidity in it until you go ahead and sell a part or all of your business to a buyer.
Business owners confidently have risks in the early stages of their businesses. The reason is that they don’t have that much value in their business which they can lose. Rather at such stages, taking risks and chances is essential for the growth of business beyond initial stages.
With the passage of time, when the business grows, so does the value of it and the business owners get more conservative about taking risks as they fear greater damages to their business. Apart from that, owner who are older, do not have the facility of time so that they can spend years on fixing bad strategies or controlling damages.
Business Brokers suggest that business owners should always be planning for a better exit strategy from their investments because it is a smart decision.
Business Owners have a few reasons to sell their business. Liquidity is also a good reason for any business owner to sell his business. Tough it may not be the only reason. Another reason could be retirement. After dedicating a time period of about 15 to 20 Years, a business owner may find himself ready to get retired. Or a business owner maybe looking for new opportunities, this could also be motivational enough to take a decision of selling your business.
Going forward, a good business owner always looks at his options. Time is risk, you have a greater risk, the greater time you have your business out there.
Before you sell
As a business owner you surely have financial goals for which you are continuously striving. This applies to the sale of your business too. When thinking about selling your business you should keep the below things in mind:
Selling a business is not only about getting a best sale price. If the owner is entering in a deal in which they are only selling a part of the business then rest of the things are also as important as the selling price e.g. reputation, culture, references, chemistry, caliber and the trust of both parties for each other.
A smart business owner should be focusing more on the quality of people they are going to be partnered with than over the last few dollars. The biggest mistake a business owner makes in such scenarios where they have intention to roll over equity is this. Keep in mind that once the deal is done, you will have to work with these people. Make sure that you have the best match for you and your company, no matter what price they offer for your business.
A piece of advice for you: Make an exit plan and be prepared when the time is right to pursue your business’s maximum value. Sell it on your conditions rather than selling on market’s terms.
CBC Business Brokers Sydney
Level 34, AMP Centre, 50 Bridge St, Sydney NSW 2000
T: 1300 661 498