Taking the plunge into owning, building and nurturing your very own entrepreneurial venture is daunting, exciting and fulfilling in equal measures. In the early days and after your first taste of sweet success, I bet you never imagined you would ever part with your business. You might have even envisaged passing it down through the family generations for years to come. However, there may very well come a time when it’s time to sell up.
In a recent infographic offering advice on selling your business, BCMS recently cited the following reasons as to why most people decide it’s finally time to sell up:
- Retirement from work altogether
- Deciding it’s finally time to cash in on capital
- Rapid growth that needs a new approach
- Moving onto a brand new venture
- Lacking in the skills the growing business needs to continue
- An offer that’s simply too good to refuse
Is now your time to sell?
If you recognise any of the above, or have some of your own reasons for starting to feel that you need to separate from your entrepreneurial venture, it’s time to pop your thinking cap on. You don’t need me to tell you that this certainly isn’t a decision to be taken lightly and selling your business is definitely an example of when you need to choose your time wisely.
Here are some important things to consider when you think it might be time to start planning your exit strategy:
- Make sure your marketplace is in the right position for negotiation processes. If your industry is experiencing a trough, it’s advisable to wait until there is improvement.
- Make sure there is a demand for what you’re offering. You don’t want to go through the efforts of hiring legal assistance, putting your paperwork in order and arranging your post-sell plan of action for there to be no interest in your business. Make sure there will be potential acquirers in the pipeline.
- As always, keep a close eye on the competition and make sure you stand out from the crowd. Perspective sellers are going to want something that will make people sit up and listen.
- Consider the social and political events during the time you’re looking to sell as these are important factors that can impact business and finances dramatically.
If you have tips to share from your own experiences, share them over on Twitter using the hashtag #SellSavvy.