Whether you started a business or inherited it, running it successfully may be a big part of your personal identity. It probably consumes as much of your life and provides most if not all of your income. It can be so hard for people to separate themselves from the business they run that they may miss out on opportunities or make bad decisions about their own future.
Sometimes, selling the business is the best way forward. How do you know when turning over the company the new ownership is the right idea?
You’re getting up there in age or dealing with medical issues
If you have reached the point where people frequently asked you why you haven’t already retired or if you have medical issues that will likely only worsen as you continue to age, it may be time to start thinking about focusing on your health and happiness rather than running the business until you collapse.
Selling the business now will give you peace of mind. You will know that your business and your employees have someone taking care of them. The money you receive for the transaction can also help you find a comfortable retirement or leave behind and meaningful legacy for the people you love or charity.
You have lost your passion, or the business needs to change
You can work in residential construction for so long that you no longer view each project as an exciting opportunity but just the daily grind. When your passion isn’t pushing you to innovate anymore, that could be a sign that you would be happier in another industry or exploring new ideas after retirement.
It’s also possible that your business could be in need of a brand revitalization. It might even need to move in a completely new direction because modern business practices have made it obsolete. If you don’t find the business exciting or it needs more rehabilitative work than you want to invest, it may be time to sell.
You have an incredible opportunity
Sometimes, you are still young and the business is still successful, but it is still the right time to sell. Perhaps an eager investor with big plans wants to offer you 175% of the current fair market value for your business and all of its assets. Maybe you just received a job offer to go serve as the executive of another business, meaning even higher income than you make as the owner at your current operation. When you have a golden opportunity, selling a business can free you up to take advantage of it.
Understanding when people often sell their businesses can help you decide if it’s time to move on from yours.