Owning and operating your own business can lead to a life full of rewards, but at a certain point, it may become too much to manage. How can you, as a business owner, decide that selling your business is the next best move for you?
Whether you think current market conditions favor the sale, you’re starting to outgrow the business, or it’s just “that time,” use these tips and tricks to help you decide when to sell your business.
Consider Market Conditions
As a business owner, you may not have a strong desire to sell your business, but the market conditions might be perfect to maximize your sale price. Selling your business at the right time is a great way to collect money while avoiding future market downturns.
2021 and 2022 are good examples: in 2021, the number of business-for-sale transactions grew by 14%. Despite rising interest rates and the current inflationary environment, 2022 was still a seller’s year.
The nation adopted a newfound desire for self-employment in late 2021 and early 2022. As a result, this recent “Great Resignation” has created more demand for self-employment in the current market.
Analyze Trends in Supply & Demand
Due to the market complications created by the COVID-19 pandemic, demand for businesses currently outpaces the supply of businesses for sale. Though this may not remain the case as we enter 2023, business owners looking to sell still have the upper hand.
Do your research and stay diligent when deciding on the right time to sell your business.
Examine Your Passion for Your Business
Overseeing your own business can be an exciting experience, but it can also be stressful and demanding. Those who own their own business often have to make sacrifices in other areas of their life to ensure that their company continues to grow and thrive.
Years of making such sacrifices can easily weigh on the mental health and well-being of a business owner, especially as a sole proprietor or single-member LLC. If the responsibility has just become too much and if the burnout has become unbearable, consider selling and moving into something a little slower-paced.
Your Business Has Outgrown You, or You’ve Outgrown Your Business
Sometimes, what started as a small idea blooms into something huge—something with an entirely different set of responsibilities. While you may be up for the challenge at first, some business owners find themselves struggling to stay motivated to tackle basic day-to-day tasks.
On the other hand, perhaps you’ve grown bored with your business and are ready to move on to something bigger. Whatever the case, if you feel as though you’ve outgrown your business or your business has outgrown you, it may be time to consider selling.
Sell Your Business with Commercial Realty Solutions
Commercial Realty Solutions is a full-service commercial real estate and business broker that can help you navigate the process of selling your business. Based in Central Minnesota, we provide a comprehensive suite of assistance to business owners, from property valuation to seller representation.
If you are interested in selling your business, contact Commercial Realty Solutions today to get started.