5 Signs That You Are Ready To Sell Your Business
So, you have invested countless hours and many sleepless nights working around the clock on getting your business off the ground for the past few years; eventually, the time has come for you to consider your next move. Is it time for you to cash out or continue building?
It is indeed an inevitable question many founders will have to face at some point. So, why not equip yourself with the knowledge to tackle the issue before the time comes.
The followings are a few signs that might indicate that you are ready to exit your business.
1. You already have an offer on the table.
Someone has approached you with an offer, and you couldn’t stop thinking about it. It is a clear sign that you’re doing something right, and there’s enough interest in the market for your business.
“Great startups are bought, not sold.”
However, you might want to consider holding off on closing the deal until you have more offers, as it will give you more leverage in setting the price.
It puts your company in a much better position to be acquired than sold.
2. You are no longer passionate.
Many entrepreneurs start a business for the thrill and excitement behind creating a successful company, rather than running it. There’s even a term coined for people of that sort, serial entrepreneurs.
It is when you feel like you have come to the end of the road with your business. It may be due to a slowdown in the growth of your business, and you are no longer passionate about taking your business to the next level.
On top of that, you already have another brilliant idea that you’re eager to pursue; but you simply don’t have the time to commit due to the current business.
If you find yourself in this situation, there’s only one logical thing to do. Wave your hat and say goodbye to your current business!
3. You want to hang the coat and retire.
What is the point of working hard if you don’t get to enjoy the fruit of your labor? We all deserve a break once in a while, especially if we’ve earned it after spending the past few years growing the seed for our successful business. Perhaps it is time for new ownership.
It could also be a case when you have reached the retirement age, and there’s no one in line for succession.
4. Your company is constantly in the red.
As much as you love your business, there comes a time when you are under the enormous burden of managing the finances. They are constantly in the red month to month, and there’s no way for you to work around it.
The accumulated debts have finally reached the ceiling. All you want is for someone to swoop in and take the burden off your shoulders.
Believe it or not, this is more common than you imagine. So, the smartest thing to do in this circumstance would be to put your business under new management.
5. You want to enjoy the profits.
What is the point of working so hard if you can not enjoy the profits? Furthermore, if you are thinking of starting a new business or start-up, the money from exiting your business will be crucial as initial capital. You won’t be starting from scratch. Instead, you would be able to have your finances in order at the start of your business and banks will be more willing to lend you money considering your strong initial financial position. This increases the probability of your new business working out with enough money to fund the new business.
The Exit
Considering the best exit strategy for your business becomes your next big task.
Exiting your business can be a stressful process and one that involves much paperwork. We take the headaches out of selling a business. When selling your business, you have to deal with attorneys, accountants, bankers, brokers, appraisers, and the list goes on. Take a breath, relax and let us do the hard work.
It is where Epoch Equity comes in. We help founders exit their businesses by simplifying the process. Let us handle all of the tedious work from valuation, marketing, legal, accounting, negotiating, and closing.
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