When you started your business, you had big plans for it. Although an exit strategy may be the last thing on your mind when you’re working to build a company, there may come a time when you have to consider letting go. These five signs can help you decide if it’s time to sell your business.
1. Business Is Booming
As an entrepreneur, there’s no greater feeling than watching the company you’ve built grow beyond your expectations. You thrive on your company’s success, and seeing your plans come to fruition validates the sleepless nights and personal sacrifices you made along the way. So why would you sell it when business is booming?
For starters, it’s easier to sell a business that’s performing well and projected to grow than one that’s struggling. Buyers aren’t interested in spending money they don’t think they can get back. Even better, they may be willing to pay more if they see the company’s potential. Remember, buy low and sell high.
2. You’ve Outgrown the Business
Building a business is exciting, and entrepreneurs like a challenge. Over time, you learn the ins and outs of the company and the industry. As a result, you may be able to anticipate every problem or find yourself less surprised by changes that you have to implement. Sometimes you just need a challenge, and the business may not be able to provide it.
If you ignore your need to solve a problem or overcome an obstacle, you may find yourself in a rut. As a result, you may not work to your full potential. Not only can this stall your personal growth, but it can be detrimental to the company. The business you’ve built and the people who rely on it deserve more than half your effort.
3. The Industry Is on the Decline
People change. Their interests change. What was a salvation one day can turn into a liability over time. No one in the 1980s would have predicted the collapse of shopping malls. Few people in the 1990s imagined the end of video rental stores and the rise of streaming services. Who thought people would choose to rent bedrooms in homes instead of hotel rooms?
The reality is that industries ebb and flow, and sometimes you have no control over that. If you notice shifts in your industry and are uninterested in taking the steps necessary to guide your company through the changes, it may be time to sell. Get out while you can and sell the business to someone who will take it in a new direction.
4. You’re Ready To Pursue Other Interests
Entrepreneurs are a busy bunch. They like thinking of ideas. They like researching and testing ideas. They like facing challenges and solving problems. When they find something they love, they are willing to dedicate all of their energy and attention to it. That’s how they’re able to build corporate empires from scratch.
However, being distracted typically doesn’t bode well for entrepreneurs. You have a limited amount of time each day. You’re diluting your energy if you’re dividing it between too many different side options. Instead of giving partial attention to several projects, choose the one that most interests you and direct all of your attention to it. This may mean selling your business to build a better one.
5. The Business Has Outgrown You
Sometimes the business’s success becomes more than you’re able to handle. At some point, your skills may not be sufficient to keep the company growing and moving in the right direction. You can look for a way to rise to the challenge—perhaps by going to school to develop new skills or hiring new people who have what the company needs.
As the company’s leader, it’s vital to understand your strengths and limitations. If what the company needs is beyond your scope, it may be time to walk away. Someone else may be able to step in and take the company where it needs to go. This also frees you up to explore new ideas.
Are you ready to sell your business and move on to your next big idea? Let us handle the details while you dig into your new plans. Contact us today and discover how the experts at Murphy Business can help you with the transition.