Signs it might be time to sell your business

For business owners, the roller coaster of entrepreneurship can be an adventure full of thrills and surprises. But how do you know when it’s time to get off the ride and step away from the track? Whether you’ve built a tech startup from scratch or taken a family business to new heights, there are signs that it may be time to pass the reigns. Recognizing these (sometimes not so subtle) signals are the first step to realizing that the universe is granting you the green light to seek your next adventure.

1. There’s an offer on the table

Imagine this: you open your email one day, and out of the blue, there’s an offer to buy your company. While this can be a flattering experience, it also sends you into a whirlwind of contemplation. No doubt, a tempting moment for any owner, an unprompted offer can be a signal that your business is at its peak value, that a competitor sees you as a threat or a new player sees an opportunity in your market. It’s important to evaluate not only the offer itself but also the intentions and capabilities of the potential buyer. Understanding the “why” behind their offer can help align it with your exit strategy or uncover new possibilities for the future of your business.

2. You’re ready to move on

The life of an entrepreneur usually isn’t one-and-done when it comes to their endeavors. As time passes, you find yourself longing for new challenges or that well-deserved, yet elusive retirement. You don’t really have a succession plan, which isn’t uncommon, but the thought of passing the torch and handing over the daily grind to fresh eyes and new energy sounds more and more like the logical next step. It’s time to start considering selling. Stepping away doesn’t diminish the legacy you’ve created, in some cases, it’s the key to preserving it while also opening up new opportunities for growth and an even greater legacy.

3. You’re burned out and the thrill is gone 

You may have started this journey fueled by passion, ambition, and a healthy dose of naivete, but now the honeymoon period is over and that flame some days is just a smolder. This feeling of burnout is more common than you think, and it doesn’t discriminate. If those Sunday scaries become a nightly occurrence, and you were once a trailblazer, but now you’re just hoping for rain so you don’t spend all your time putting out fires, then it might be time to take a step back. Losing that spark doesn’t only impact the performance of your business, it can bleed over into your personal life as well. Selling can be the act of kindness you owe to yourself, your family, and your customers. 

4. It’s time to reap the rewards

You’ve poured your heart and soul into this venture. Planted seeds watered with your blood, sweat, and tears. Now it’s time to savor the fruits of your labor. Maybe you’re enticed by the notion of financial freedom and being able to focus on a passion project with a clear mind or maybe you’re ready for a sabbatical before conquering new heights, or maybe you just want to buy some land and watch the wind blow. Selling your business could be the path to it all. Exploring this path doesn’t come without caution. For many owners, the emotional toll can cast shadows alongside the financial gain. What you think you should be rewarded and what the business is actually worth aren’t always one and the same. You have to remain objective regarding valuation and keep realistic expectations. 

5. It’s a fire sale

There may come a time when you have to face some uncomfortable truths as an owner. Maybe there’s increased competition, a market downturn, or new technology that’s shifting the landscape, but the business has seen consistent financial struggles, and now you’re in a period where some tough decisions have to be made. Selling the business or its assets can be a strategic move to minimize losses and salvage remaining value at risk to turbulent market conditions. If you’ve taken on outside investors, deciding to sell could be the move that brings them some return rather than a total loss. Being forced into a decision to sell is never an easy one, and can be a bitter pill to swallow. However, in the long run, it’s better to salvage what you can and avoid being burdened with a lifetime of debt, or worse.

Are you seeing any of these signs? Think you might be ready to sell your business or start exploring a sale in the next 24 months? You’ve got the green light to go for your next adventure. Book a discovery call to learn about the benefits of selling withSenzu.