Top 10 Signs It Might Be Time to Sell Your Company

Running a business can be tough and for most small business owners, a major portion of their net worth is pretty much tied up with the value of their business. There’s no telling what the market will be like in the future and after just a couple of years in the field, many ask themselves, is it time to put up my business for sale?

But, why do you even need to sell your business in the first place?

There can be many reasons for this like you feel tired and it is now time for someone else to take over, maybe it is just too tiring, and you’re just done with it, or perhaps your profits are just declining.

The reasons don’t matter as long as you’re prepared to make the choice.

So, if you fall into this category, keep reading, because, in this blog post, we will be discussing the 10 things to look for that tell you that it just might be time to put down the reins and sell your company.

10 Signs It Might Be Time To Sell Your Company

1. You’re Too Small as Compared to the Competition

There are many different industries in the field of business, there are some specific industries where only a couple of companies have the lead in the entire market. Just take a look at Google and Bing for examples.

These two giants have such a monopoly in the Search Engine industry, that it can be pretty hard for any other competitor to even step in.

Just know that, while your products might be as good as your competitors, it is hard to break a monopoly.

2. There is a Huge Change in the Market Trends

The market changes constantly and there is no business out there that is immune to this change. You need to look for signs that the industry is moving away from the type of services and products your company sells.

And if there is a huge change, it might just be time to put up the reins.

After all, you do not want to end up like Kodak right?

They were the number one camera film manufacturer in the ’90s and had a huge monopoly in the industry, but since digital cameras became a thing, they failed to keep up with the old ways and had to shut down in 2012.

3. You’ve Had the Best Growth Over The Recent Years

Hey, people don’t always sell during the bad times you know. And while this might seem like a contradiction, selling when you’re in the green sounds like a dumb idea, right?

But think about it from the POV of an average buyer for a moment. Would you even like to invest or buy a company that is always in the red? The answer will be a 100% “No”. People like to invest in things they are sure can make a profit. 

Just take a look at YouTube for example, Steve Chen, Chad Hurley, and Jawed Karim created YouTube in 2005 and in just a couple of months the video streaming platform had taken the world by storm. And not even a year later, they sold off YouTube to Google for a whopping $1.6 Billion in stocks in 2006.

4. You Have a Clear Monopoly on the Market

Getting to the top is the dream of any businessman. So, if you’re someone who has a strong foothold in your corner of the market, it is more than likely that there will be many who are interested in buying you out.

For example, Vine, the very first short video platform, was brought up by Twitter when they still had a clear monopoly on the short-form video content market.

5. Your Growth Has Slowed Down

You know, you won’t always be on top or it will eventually get too tiring to keep on top of all the competition. Markets and industries constantly change and you need to keep putting in more and more to remain in competition.

R&D is a core part of many industries, but keeping up with the latest tech and trends will eventually land you in a standstill, where you’re still profitable but the growth hasn’t been as much as you’d have expected.

This just might be a sign that it just might be time to sell the company.

7. You’re Just Tired of It All

You know, for many startups and small businesses, burnouts are a very common thing. Running most business operations by yourself can take a toll on your body and one day you’ll wake up and think, I don’t want to do this anymore.

This is your body telling you that you’re spent and cannot go on handling all complex and mind-boggling operations anymore. While having your own business is something to be proud of, it can be stressful. 

So, if you’re feeling tired all the time or less motivated as of late, maybe it’s time to sell, right?

8. You’ve Found Something Else You Wanna Work On

Life can be mysterious and not everyone can do the same thing over and over forever. Passion plays a huge part in running a business on your own. But what if you find a passion that looks more fun and your motivations have changed over the years?

As a company owner, if things have become not as exciting or fun and you’ve found that you like something else, it may be the best time to sell your company.

9. It is that “Once in a Lifetime Offer” Kind of Thing

As a business owner, you might be used to people constantly making offers to buy your company, but it rarely happens that you get an offer that is so outrageous that it has you in awe.

It might be from a huge company that is trying to get into the field or from a competitor who wants to merge and create a bigger fish in the sea. The crux of the matter is that no matter how many years you work these kinds of opportunities will only fall in your lap only once in your lifetime.

10. It is Now Time To Retire and Leave the Reins to Someone Else

When you’ve been working to grow a company for decades the idea of having a family life, freedom and time feels like a dream. If you’ve worked till the ripe old age of retirement, it is time to give up the reins and let the young ones take over and sell it.

DID YOU KNOW?
80-90% of business owners have their wealth tied up in their companies, according to The Exit Planning Institute. Selling provides a unique opportunity to unlock this wealth, enabling new ventures or a comfortable retirement.

Conclusion

Is it really the right time to sell your business? Well, realistically only you can answer this question.

In this blog post, we have gone through the ten signs of how you can tell if it is the right time to sell your company. If any or most of these points apply to your company, you just might wanna take a look at your options.

But, if this is not the case then do not worry, just bide your time and try improving, there will definitely come a time when you can definitely hang up your cloak and sell your company.