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When To Sell Your Business

For many entrepreneurs, the goal is to create a stable or growing business and sell it to an existing competitor or complementary corporation. Online businesses are perhaps particularly prone to this model. The decision of when to sell your business, and what that sale should look like, can make all the difference in the value you receive for your efforts. 

Why sell now?

If you are considering selling your business, it is important to consider what is driving your decision. If you are looking to cut back your workload or put your effort into a different venture, there may be ways to accomplish that without selling. By bringing on a partner, restructuring the business, changing your staffing or turning to vendors, you may be able to maintain and grow your business while also cutting back your time invested. 

Financing issues

If your business is at a crossroads, selling might be the right choice. It might also be a time to consider a greater investment. Securing financing on favorable terms could allow you to get over the hump and start to make real headway. This can be a difficult step for many, as it is easier to invest one's time than it is to take on the risk of financial debt. It is important to have a clear plan before pursuing this route.

Aggressive growth

Merging with a competitor or acquiring another business outright can change the direction, and potential, of your business. If you are concerned with stagnation, you could look to expand your offerings, rather than getting out. Mergers and acquisitions can be tricky to structure. You will likely need experienced legal guidance to protect your interests and ensure that what you are getting is worth the price.

The right reason

There are many valid reasons to sell a business. Knowing the right time to move on is about more than boredom, exhaustion or fear. You must understand your options and analyze the offer on the table to make sure you aren't throwing away all the time and energy you've invested so far.

Source: Entrepreneur, "5 Reasons Panic Is the Worst Reason to Sell Your Online Business," by James Parsons, 18 January 2018

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