When entrepreneurs start a business, they likely aren’t thinking about selling it. However, the time will come when the owners decide to sell for various reasons, including retirement, desire to take on a different venture, and profitable growth ensuring a good sale.  

Why it May be Difficult When Owners Decide to Sell 

Many reasons contribute to worry over whether or not to sell a business. You want to see the legacy you’ve worked hard to build be preserved. You want to sell at a profit and ensure the well-being of your employees as well as your own future. These are all things that must be considered when owners decide to sell their business. 

Things to Consider When Deciding If and When to Sell 

When owners decide to sell, they must first decide if they really want to sell and then choose the best time to sell the business. That requires facing the following decision points. Do you still have the necessary passion and energy to run the business or are you worn out? Will you have enough money to live on if/when you sell the business? What will you do with the time you have devoted to building and operating the business? Is your business niche reasonably secure or is it and its industry on the way out? Do you have a succession plan so the business can function without you? 

Top 10 Reasons Business Owners Decide to Sell 

Consider these 10 reasons that business owners decide to sell: 

  1. The risks of operating your business has started to outgrow the benefits.
  2. Changes in the industry or economy have made it difficult to keep running your business without some major infusions of capital or new operating approaches. The business has outgrown your personal abilities to run it. 
  3. Perhaps you’ve outgrown the business and want to focus your energies elsewhere. Perhaps you’ve developed some new and different business interests. 
  4. You want to retire and enjoy the profits of your business’s sale.
  5. Changes in your family circumstances, such as the health of loved ones, make it necessary to move away from the business. 
  6. Personal health declining. 
  7. You want more personal time. Running your own business is very time consuming.
  8. Money. You’d like to convert the value of your business into cash that you can use to follow new dreams. 
  9. Relocation. You may need or want to move somewhere else, and that move won’t be compatible with continuing to operate your business. 
  10. Selling was always the plan and the time to sell has arrived. 

Bad Times to Sell Your Business 

When owners decide to sell there may be some good times and some bad times to pursue a sale. The good times include when the business is doing well, the industry surrounding your business is growing, and you’ve received a very attractive offer. The bad times include when the economy is poor and buyers aren’t buying readily at good prices, your business is facing problems that would make a sale difficult, and you are facing some lawsuits or litigation.

Steps to Sell Your Business 

When owners decide to sell, it is important to consider these steps. 

First, clarify for yourself and potential buyers why you want to sell the business. 

Second, plan the timing of the sale well in advance of the actual sale period so that you can be well prepared. 

Third, get a good business valuation. 

Fourth, evaluate the possible use of a broker to help find potential buyers and help you work through the sales process. 

Fifth, carefully prepare all the necessary sales documents.

Seek Professional Business Coaching Assistance 

Contact Blue Diamond Consultants, for home service business coaching services. Our coaching experience in this industry will help position your own business for the most profitable sale.