When is the right time to sell my business?

Kenny Rogers sang, “You’ve got to know when to hold ’em, know when to fold ’em, know when to walk away and know when to run…” The problem often is that most business owners hold on for too long when the business starts doing down the drain. They try to stay afloat, re-mortgaging homes, firing staff, doing everything they can to help stop that ‘small business for sale’ sign going up. But, selling up doesn’t mean giving up, and there are plenty of factors that go into deciding to sell your business. At the end of the day, you need to ask yourself, is now the right time to sell my business?

Let’s look at the figures

Answering the question on whether you should put your business up for sale is kick-started by asking a few other questions first. Take a look at your business as it is right now, what is the long term future? Is it likely to continue growing, or will it face a steady decline? Many people stick with their business hoping that things will start to look up, but it rarely happens this way. Unless you make some drastic changes, things will only keep going as they are. Your finances will end up all over the place, and cash flow problems will start to affect your business, and then your personal life. If things are going badly and have been for some time, it could be time to bite the bullet and shut the doors before things get worse. It’s important that you watch your cash flow carefully, and remember, if the business falls deeper into debt, there is a strong change that no one will want to buy your business if it’s doing badly. On the other hand, if your business is doing really well, this could be the ideal opportunity to sell and make yourself maximum profit.

Are you in peak condition to sell?

Whether you are ready to sell or not, it’s important to make sure that you’re prepared to sell well before you put up the “small business for sale” sign. Ask yourself, if you had to sell tomorrow, would your finances, stock, everything else be ready to hand over to someone else without a hitch? If not, it’s time to take a closer look at your business and put practices in place that will help get your business ready for sale. If you know your busy time is fast approaching, this could also be an ideal time to talk to business brokers in Melbourne about selling your business. People who are taking over your business want to be assured that it is on the up, not on a downward spiral. So, it’s a good idea to know your business trading cycle back to front, and aim to sell your business just before you hit the peak cycle.

Sometimes life just happens

When you’ve poured all your blood, sweat, tears, and finances into a business, it can be devastating to have to sell whether the time is right or not. However, sometimes you just don’t have a choice. Some of the reasons that you may have to sell include the break up of your marriage, the dissolution of a business partnership, or the untimely death of a major stakeholder. There are other circumstances that can influence the decision to sell such as personal reasons, investment reasons, or even strategic business reasons. If you get up every day and love going into your business, then you should stick with it. If your business is making you unhappy or eating too much into your personal life, this could be the perfect time to make a change and speak with a business broker Melbourne. When it comes to small business, the age old saying that winners never quit does not hold true. Instead, you should consider that a successful business person knows to sell their business at the right time. Deciding to sell your business is a tough design, and not one to be taken lightly. But remember, you should aim to make that decision while your business is doing well, but before it stops being profitable all together. From the wisdom of Kenny Rogers, “You never count your money, when you’re sittin’ at the table, there’ll be time enough for countin’, when the dealin’s done…”

To help make make a deal and sell your business as smooth as possible, speak to the expert business brokers in Melbourne, AJW Business Brokers.