Knowing when to sell your business is one of the toughest questions an entrepreneur has to answer. There is so much to consider, both financially and emotionally. If you’ve been toying with the idea, here are 6 indicators we’ve seen that might mean it’s time for you to sell your business:
- Debt-to-asset ratio. The losses your business has accumulated are greater than your profitability can be.
- Losses are snowballing. This doesn’t just mean a temporary slump in the market, but rather that you simply cannot get ahead. Aside from the normal ups and downs in business, your losses are heading south with no change in sight. Your business simply is not profitable anymore.
- Inventory isn’t moving. This is a sign the market for your products is shrinking, so it’s time to either breathe new life into your products and marketing, or call it a day.
- You’re ready for something different. Do you want to start exploring your options for retirement? Or have you lost your passion for the business, and it’s time to move on to something new? Some business owners simply reach a point where they have accomplished all the goals they had with a particular business, and are ready to tackle some of their other goals.
- Time investment. Startups will always require your attention 24/7 at the beginning, but you should eventually be able to move away from that demand on your time and energy. If your business simply cannot operate without you, sometimes the best exit strategy is to pass it on.
- Changing market. It’s a fact that the market we sell to is ever evolving, and sometimes a business can’t keep up. Buyer demographics can change, as can the dynamics of your local area.
Your reasons might be one or all of these, or something else altogether. ACCG has been successfully selling businesses since October of 1995. We are dedicated to helping you sell your business at a profit. Because of that, we don’t simply sell your business to minimize your losses; we also prepare your company to maximize its value. If you have decided it’s time to sell, let our expertise be your resource through the process.