Selling a business, particularly one you have built by yourself, can be a traumatic experience. Here are some key points to consider in making a decision about whether to sell.
Check your motivation. Reasons may include disability, death, burnout, desire for greater profits, relocation, other interests, divorce, disinterest in the business model, family pressure or a sheer lack of skill at the business.
2
Check your timing. You may plan for a long time to sell the business, working for years to achieve one that is attractive and salable, someone may make you a great offer out of the blue, or a family or personal crisis may drive your timing.
3
Consider selling the business but arranging to continue working there, if you still have your heart in the business but don't want to run it anymore.
4
Decide whether you want to sell, and if you do, meet with your accountant, lawyer and spouse, individually or together, to determine the best time and process for selling.
Tips & Warnings
If family is involved in this business, bring in a family business consulting firm to help inform your decision.
Create something else positive that you can move into after selling so that it won't seem as big a loss.
No one can be objective about their own business. Hire a business broker to help you look at the value of your business objectively.
If your business is driving you crazy and not making you any money, it's not very attractive for selling purposes. Be realistic about what you'll be able to get for it.
If you are going to sell your business, do not simply rely on your financial statements. You need a business valuation to accurately represent your business' worth. A business valuation is a process that determines the fair market value of a business.
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If you are going to sell your business, do not simply rely on your financial statements. You need a business valuation to accurately represent your business' worth. A business valuation is a process that determines the fair market value of a business.