This post will explore some of these reasons and give you some pointers to make the right choice for you and your business.
You’re Planning to Retire
If you’ve had a successful career, you’ve spent years building up your business and your work to be able to retire and live comfortably. There’s no actual set age for retirement. Some people choose to retire once they’re financially stable enough to live without work, while others prefer to keep on working for as long as possible.
But this is one of the most common reasons that people sell their businesses. In this case, once you’ve decided to retire, your plan should be to create an exit strategy that gets the most value for your business, while allowing the business to continue to thrive.
Get your business in a position where it’s primed to grow, as this will increase its value. Find a buyer who is likely to build your business to further success.
Your Business is Struggling
Unfortunately, not every business can succeed. Sometimes it’s best to cut your losses and move on. This might be because the industry is shrinking or your business simply isn’t keeping up with competitors.
In this case, a business broker can help you find the best deal for your business. This doesn’t necessarily mean the end of your business either, as it might find success when it meets some fresh eyes.
Greater Profits from a Partnership
Selling your business doesn’t necessarily mean moving on completely. In some cases, you could sell your business but continue working as a partner. This might mean selling to a larger company, or taking on another business under your company umbrella.
This may or may not involve selling your business or acquiring one. Businesses can work together without combining in this way, but it’s often a stabler and more profitable way to do so. You combine efforts, which means that you can cut costs while taking advantage of a wider customer base and different skills and experience in both teams.
You Want a Fresh Challenge
Sometimes, the problem isn’t with the business or with the fact that you want to settle down. It might be that you get bored in your position and want a fresh start. Starting a new business is a very different experience from running an established business, and it can be exciting to open yourself up to new opportunities.
With the profit from selling your existing business, you can also give yourself a great head start when setting up your new business. This head start might help you reach new levels of success, either in the same industry or a completely different one.
You also benefit from the experience of your previous business, so you can make sure you avoid making some of the same mistakes.