Running a business is not always an easy task. Like any other aspect of your life, it has its ups and downs, and it is normal to have a change in heart when it comes to running a business. Many serial entrepreneurs usually like the idea of owning businesses, but they often sell their established businesses to pursue another venture or gain a higher profit. In reality, it is pretty similar to changing careers or jobs. If you feel you’re ready for a change, especially when it comes to your professional career or business, it would be best to consider selling your current business. Here are ten key signs that indicate it is time to sell your Ontario business.
1. You are tired and demotivated
Everybody gets tired at some point in time, and business owners also burn out like their employees. When you look from the outside, it might appear as if business owners are living the dream because they can make their schedules or work as little or as often as they want. However, running a company can add a lot of stress and unnecessary pressure to your life. You might find yourself working for 60 to 80 hours per week instead of 40 hours because you are in charge of everything, which can be extremely overwhelming.
If you lose motivation in the long run, your business might crash down. That’s one of the reasons why you need to be honest with yourself when you begin losing motivation and see it as a sign to let go. If you cannot bounce back, it would be a great idea to sell the business and pursue another venture that interests you.
2. Your business has outgrown your skillset
As your company grows, you will need different and more skills to keep it growing than when you started it. For instance, you might be a good salesperson or marketer, which was incredibly useful when starting up the business, but, currently, leadership is needed in various areas in the company. You can employ more individuals to take on the new leadership roles or learn the skills yourself. However, if you don’t have the drive or the energy to continue with the business that might be a clear sign that it is time to sell it and move on to something else.
3. Your business has increased in value
If you’ve built your company prudently and operated carefully, there’s a good chance the business has significantly increased in value. As a result, other people out there might be eyeing your establishment for acquisition or purchase. For instance, if you’ve operated a small enterprise that fills a specific niche, you can make a good profit by selling it to a bigger company that covets your product, brand equity, and customers. A big acquisition might necessitate your involvement for an agreed-upon period before you leave the business. Still, this opportunity can be an excellent way for a successful entrepreneur to cash in on their many years of hard work.
4. You have received a good offer
A good offer can be a big motivation to sell your business, especially if you have put in the effort and hard work to build it from the ground. If people realize that your business is quite profitable, there is a high probability that you will begin getting offers. If you want to grow the business and an offer that is more than the present valuation of the business is made, it would be a good decision to accept it. If you suddenly want to try something different, having a valuable venture can give you that freedom and a lot of money. You can receive many great offers depending on your company’s value because you have already proven its worth and success.
5. You have received a lucrative job opportunity
Many business owners, including the marginally successful ones, will be approached with new opportunities. These opportunities might be in the form of a role at a big organization or a new business. Your business might have attracted the attention of a company that may provide a lucrative job position. As a business owner, you might feel rewarded for your hard work and efforts, especially if you get a job offer from any industry leader who can easily meet your salary expectations. Besides, some consultants might feel they’ve succeeded in business if a big company gives them a job offer that offers more prestige.
Regardless of the nature of the opportunity, you might find yourself actively considering going for the opportunity. If you come to this point, it is a clear indication that it is time to sell your current business. Besides, it would be unwise of you to miss out on something special. A good offer might bring the cash that you need to accomplish other goals that you have for your family or life. That might be a sign you are ready to put your business up for sale.
6. Your business is facing increased risk
Generally, there are many risks associated with running or owning a business enterprise. Some changes that might occur in an industry or business might cause you to consider putting your business up for sale. If a company has currently become a big burden to you as a businessperson, it might be the right time to consider selling the business.
If the business equipment you need makes your company take on a lot of debt, you might be ready to sell it. Increased risk to your safety due to crime near your business location might indicate it’s time to sell the company to another firm that can address all the safety issues.
7. You have no more money to invest
According to statistics, 8 out of 10 startups fail for different reasons. Failure is a normal part of life, but a failed company can also be seen as a change in direction, especially if you want to pursue another professional venture. Although it is essential to invest your all into your startup, it is also vital to be cautious, especially when the business enterprise demands more than you have.
Taking a loan to continue running your business might be a risky move. If you’re cutting into your retirement fund or your life savings to continue running the company and you’re second-guessing yourself, it might be an indication that you need to consider selling the business. It is almost impossible to run any business if you’ve run out of cash to grow it.
8. Your industry is changing
If your industry has drastically changed and you cannot keep up with the changes, you need to consider selling your business. Generally, the costs of adapting to the current industry changes might help you determine when you are ready to sell the business. Selling your company to one of the industry giants might help your business stay open. If your company loses customers to another firm because of their dominance of the market or pricing, selling the business can help you provide for your family’s needs without the demands of managing or running a business.
9. You have personal issues that need your attention
Some personal matters might arise, causing you to put up your business for sale. If you have some personal issues that need your attention, then you might sell your company. As an entrepreneur, you might require time to work on your relationships, such as assisting an aging parent who needs help doing their daily activities or taking care of your children. A married individual may also need some more time with their spouse.
Changes in your immediate family’s needs might cause you to consider putting your company up for sale. If you began your company as a way of taking care of some personal issues like working part-time from your house to raise small kids, then you might consider selling the firm when the kids are older and can manage working outside your home. Also, if you have different needs that might include paid vacation time and insurance benefits, then it might be a sign that you are ready to put up your business for sale.
10. You are already thinking about retirement
If you have come to a point where you are tired, and the days you spend planning your retirement outnumber those you spend focused on growing your company, you need to start planning your sale. Remember that any delays will only cause your company to lose value. After all, there’s nothing more for you to do because you have built your company and gone through the ups and downs. So, it’s probably the perfect time to retire and go enjoy some time on a beach in Ontario, Canada.
Being an entrepreneur comes with many benefits. You get to make your schedules, reap direct benefits when revenue begins pouring in and call your shots. However, at some point, you might reconsider running a business or owning a particular business where your mental energy and money are tied up. If you notice any of the telltale signs discussed above, it might be time to sell the business. Selling a business can be a difficult task, but once you realize your time has come, it is vital to move forward with the decision and avoid any delays. If you are in Ontario, Canada and you are considering selling your company, call us, we can help you with the sale.