Selling a business is never a decision which is to be taken lightly and in fact it can be a very difficult decision to make if you have built something from the ground up. With this being said, if you are looking to pursue a career as an entrepreneur for example, that very business which you have built, may be what is holding you back from achieving more success. A business ties up lot of cash and assets and selling it on could be the smartest move that you have ever made. We spoke to the guys at BCMS, who are currently working a campaign called #sellsavvy, to find out when is the right time to sell your business, and how to do it, let’s take a look.
Time of Life
One of the most popular reasons why people sell on their businesses is because they have reached a stage in their life where they no longer have the energy, passion or desire to keep it going. Once you reach a certain age, your priorities will change a great deal and if you feel that you aren’t enjoying your later years because of your business, it is time to sell up.
Securing Your Cash Freedom
Many young and hungry entrepreneurs want to start investing their cash in start-ups and in other businesses, something made difficult if your own business is tying up all of your capital. Selling the business whilst it is going well, could be a smart move for anyone who is looking to invest elsewhere, especially if these investments can top whatever profit the business is making. Putting all of your eggs in one basket is a bad move and so selling the business could be the best decision.
Reaching Your Terminal Velocity
Some businesses only have a certain amount of capability and once it has reached its terminal velocity, selling up and moving on could well be the best idea. Some businesses have a pre-determined scale and once yours has grown to a point where it is unlikely to grow anymore, you need to seek for bigger and more exciting opportunities.
Invest, Innovate, or Perish
Very often a business needs so much investment in order to innovate and push forward, that it creates a difficult situation for business owners. If you have the cash to invest then fine, but very often business owners get stuck in the mud because they do not have the capital or the resources to throw at the business, in order to take it to the next level. If you are in this kind of situation then selling up looks like it could be the best move for both your business and for yourself.
Selling a business is not easy and it can be a complicated time for you and then business itself. BCMS shared this handy infographic with us so if you are thinking about selling up, you can do so in a smart way.