When to Sell Your Business

It’s a common question we get here at Winning Hand Corp. “Should I sell my business? How do I know when it’s time?” 

Selling a business is a significant decision that requires careful consideration and timing. Knowing when to part ways with the enterprise you’ve built is a nuanced process, often involving a combination of personal and business-related factors. Here are ten key signs indicating it might be the right time to sell your business.

1. Your business has outgrown you and your abilities:

As your business expands, the demands on leadership evolve. If you find that your business has outgrown your skill set or you are no longer the best person to lead it to the next level, it could be time to consider selling.

2. You’ve outgrown your business:

Conversely, personal growth can be a reason to sell. If your ambitions and skills have surpassed the potential of your current business model, selling might allow you to explore new opportunities that align better with your aspirations.

3. Your industry is shrinking or changing drastically:

Industries are dynamic, and sometimes external factors can impact the long-term viability of a business. If your industry is undergoing significant changes or facing a decline, selling before these challenges become insurmountable may be a strategic move.

4. You’re getting bored or distracted:

Entrepreneurial passion is a driving force, and when that passion wanes, it’s time to evaluate your commitment. If you find yourself getting bored or distracted, selling the business might be the fresh start you need.

5. Your business is very profitable:

High profitability can make your business an attractive asset in the market. Selling during a peak financial period could maximize the return on your investment.

6. You have a strong offer on the table:

Sometimes, a good opportunity knocks when you least expect it. If you receive a strong offer that aligns with your valuation expectations and future goals, it might be worth considering.

7. You’re burnt out or no longer enjoy it:

Burnout is a common challenge for business owners. If the daily grind has taken a toll on your well-being and you no longer find joy in running your business, it may be time to exit.

8. You’re ready to retire:

Retirement is a major life transition. Selling your business can provide the financial means to support your retirement lifestyle and allow you to step into the next chapter with peace of mind.

9. You no longer need the money:

If your financial goals have been met, and your business is no longer a necessary source of income, selling can offer the opportunity to enjoy the fruits of your labor without the day-to-day responsibilities.

10. Your life circumstances have changed:

Changes in personal life, such as health issues, family considerations, or a desire for a different lifestyle, can influence the decision to sell. Evaluating how your business fits into your evolving life circumstances is crucial.

Let Winning Hand Help

Deciding when to sell your business is a complex process that involves a delicate balance of financial, personal, and market-related considerations. By recognizing the signs mentioned above and carefully evaluating your unique situation, you can make an informed decision that aligns with your goals and aspirations. Remember, selling your business is not just an end; it’s a new beginning.

If you need advice on when or how to sell your company, Winning Hand is here to help. We have more than fifty years of experience in helping business owners navigate the waters of buying and selling. We can help you get your ducks in a row and partner you with prospective buyers.

Hedin E. Daubenspeck winning hand financial representation tulsa

Hedin E. Daubenspeck

Certified Public Accountant

Hedin Daubenspeck is a Certified Public Accountant in private practice with 40 years of experience.

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