Selling a business can be a difficult decision to make. After all it can be hard to walk away from something you’ve invested in both financially and otherwise.
For some business owners there isn’t a “last straw” when they decide to make the call. Many contemplate it for months or even years before calling it quits while weighing the pros and cons of selling.
How do you know if you’re ready to sell your business?
Here are some things to consider before making the decision and moving onto your next venture.
Weigh the risks
CEO, co-founder and chairman of Facebook Mark Zuckerberg once said, “The biggest risk is not taking any risk.” Often times what distinguishes a successful business from a flop is an owner who is willing to take risks in order to make the business work. Staying by your company’s side may mean taking risks to ensure financial growth. If you aren’t willing to take risks it may be a sign that it’s time to cash in on your company.
Assess why you first launched
There’s a reason why you launched a business in the first place. Did you accomplish your goals? If not are you ready to keep fighting until you do? If you’ve lost your passion you may be pushing your luck by staying. Business owners who are burnt out and jaded can influence staff and company morale. It may be a good idea to throw in the towel if you feel like you’ve ran out of drive.
Look into other options
If finances are your biggest concern you may have other alternatives to selling. Some business owners choose to restructure and bring on additional owners by selling shares. After liquating assets some owners will buy the shares back. This is just one of many options available to business owners looking for alternatives to selling outright.
When making the decision you’ll want to ask yourself not only what’s right for you as a business owner but also what’s right for the business. What will happen to it once you leave? Will your legacy live on or leave with you?
Selling or staying with a business is never an easy decision. By contemplating all of your options you may be able to find one that works for both you and your business.