As an entrepreneur, there will come a time when you have to decide whether or not to sell your business. If it has crossed your mind, a few key signs will tell you it’s time to look for prospective buyers.
It might be emotionally challenging to let go of an established business, but at times it can be the financially sound thing to do.
This article will discuss signs indicating when to sell your business and how a specialist can help you get the best asking price for it. Read on to get pro tips from the best business brokers in Michigan.
1. You Can’t Efficiently Run Your Business Anymore
Running a small business is no walk in the park. When you start one, you will have to do everything yourself at one point, from developing and executing your business plan to creating your marketing campaign and keeping track of your finances. It can be a lot on your plate if you are the only one keeping the business alive.
If you experience any of the scenarios below, it might be time to work with an experienced broker.
- No time: The first sign to sell a business is that you can’t complete all your tasks. Small business owners get the same 24 hours in a day, so fulfilling your duties as the owner shouldn’t have to be so hard.
- Financial loss: If you spend too many hours on administrative tasks, you cannot focus on high-value ones like business sales and marketing. Doing so can negatively impact your cash flow and the overall value of your business. And you don’t want to sell too late and have debt you can’t pay off.
- Skills gap: Even with ample business experience, entrepreneurs sometimes discover that being a jack of all trades is not always enough. Business demands are ever-changing, and it can be overwhelming if you are not an expert in an essential part of your business. And if you try to do it all yourself, you might find that some tasks are taking too much time out of your day to learn a new skill.
- Lack of passion: Sometimes, the entire process of being an owner becomes too overwhelming and frustrating that you eventually lose the passion you once had. If your heart just isn’t in it, you should move on and find the right business for you.
- No personal life: Another sign to start the sales process is when you don’t have a life outside of your business. Aspiring entrepreneurs have their work cut out for them, but no business is worth losing a balanced life over.
If you have experienced any of these signs while operating your business, it might just be the right time for you to sell. Contact us today and we will help you find potential buyers and get the best price for your business!
2. Your Business Has Outgrown You
As a small business owner, it’s hard to admit when your team outperforms what you’d anticipated. Your financial statements might impress you, but the other stockholders might want more out of the company.
Having employees with bigger dreams for your business than you is not always ideal. If expanding your customer reach or achieving your target annual sales doesn’t excite you like it once did, it might be time to put up a business-for-sale sign.
Otherwise, employees will feel frustrated because of the lack of progression and the amount of underutilized potential.
When this day comes, ask a business broker to attract qualified buyers who have your team’s best interest at heart. Let them be the champion who takes your small business to new heights.
3. Your Health Has Suffered
If your business has negatively impacted your physical, emotional, mental, or spiritual health, it’s best to attract buyers and start the due diligence process. Remember, your well-being is one thing you should never compromise.
Working long hours, lack of sleep, and constant burnout can leave you feeling drained. When this happens, your immune system drops and you are more likely to get sick.
Eating healthy, exercising regularly, and unwinding usually does the trick. However, if these activities don’t do you any favors, it may be because your business doesn’t inspire you the way it once did.
You only get one body, so make it your top priority. If you can’t handle the demands of your company, it’s time to move on to your next venture.
4. Your Industry Is Shrinking
Customers are the backbone of every organization. Unfortunately, their needs and wants shift over time, making any industry vulnerable to disruption or obsoletion. After all, it’s challenging to generate interest in products and services that don’t adapt for the future.
Think DVD, game, and video rental in the country. At its peak, Blockbuster had a business valuation worth billions. From thousands of stores nationwide, there is now only one left in Bend, Oregon.
If you’re sailing a sinking ship, it may be time to work with a good broker to complete your business sale. Trends will give you clues if there’s no space in the future for your business category, and when it happens, you should act quickly or risk losing more money than you should.
Remember, you can make changes to future-proof your business, but fighting change is never a fun route. If a potential buyer has a plan for your tangible and intangible assets, don’t be afraid to join the sale marketplace and start new businesses.
5. You Get an Irresistible Offer
Business owners often get offers for their brands beyond their projected value. This scenario happens more than you think, even during a slow economy.
For instance, if your company continuously earns profits and has a formidable online presence, you might attract out-of-the-blue proposals. When a potential buyer makes an offer much more than your business’s worth, it might be crazy not to sell.
6. You Find a Partnership Opportunity
The late Steve Jobs once said, “Great things in business are never done by one person; they’re done by a team of people.” If you find a prospective buyer with a partnership offer, it could lead to a transformative unite-and-conquer strategy for your brand.
Combining forces with similar companies might give you a chance to get a bigger slice of the pie. Plus, it might provide you with the business assets, experience, and skills you need to become a bigger fish in the same pond.
Even the most notable worldwide brands partner once in a while for exposure, charitable causes, and other factors — McDonald’s and Burger King, for one. If you find an opportunity to sell a business while keeping your position, even a top business broker would recommend taking the deal.
7. You Receive a Proposal To Participate in Another Venture
Many entrepreneurs often find other businessmen and women associated with their businesses — even small companies that haven’t made it big yet. If a visionary approaches you for promising projects like franchise opportunities, it might be a sign to sell your business and work on another project with great potential.
If you’ve been feeling half-hearted about your business lately and have received such a proposal, there’s no shame in starting the selling process. Remember, passion is crucial for a business to succeed.
Listen to your gut feeling. If you want in on the action with other businesses, go ahead and try something new.
Work With a Reliable Michigan Business Broker Today
Have you been asking yourself: Should I sell my business? If all signs lead to an astounding yes, then hiring experienced business brokers can help simplify the selling process for you.
Selling businesses can be an overwhelming process. Aside from preparing financial records, tax returns, and legal documents, you also have to find standout business buyers among qualified leads. Without an expert on your side, you might have a hard time structuring the sale.
If you want to ensure a seamless transaction that protects your interests, get in touch with Arman Nazarian Business Brokers. We know how everything works in a business transaction and will bring credibility to the table. Our experienced business brokers can help you get the best price for your business.
Work with us now to successfully sell your business with the top-producing business brokers in the state!