5 Signs It's Time to Sell Your Business

Heather Lomax, Media Relations Specialist, Financial Licensing AdvisorsThere are many reasons that you might consider selling your business, aside from the obvious.Yes, in many cases, a failing business is a solid reason to sell it before you’re too deep in the hole, but there are other factors that you might not have imagined when you first started your business that make selling a valid option.Here are a few signs that indicate you should at least consider making good on your investment before it’s too late.1. Lack of Money, Resources, or InvestmentsIt happens every day – a business begins with faulty projections on potential revenue, and within a year or two, they sink. If you find yourself seeing less profit than you put in, you either need to clean up your business tactics quick, or go ahead and sell. In most cases, even if you revamp your entire marketing plan, it’s too late to make up for all the lost revenue in a reasonable timespan. It’s a painful thought, but your business might very well be worth more now than it will be in the long-term. Remember, plateaus can and will happen, so use your best judgment on whether or not this is a temporary slump.2. Changes in the Market, for Better or WorseWith the way businesses operate in conjunction with the market, you are likely to make more money at certain points in the cycle than at others. Therefore, you need to know how to navigate those economic downturns and return to the surface. If those periods of low revenue don’t last a significant amount of time, this actually might be the best time to sell your business. It’s far easier to sell a successful business, and it might benefit even more from some new faces to represent the company.  However, while this may be true, you also don’t want to be stuck trying to nurture a dying business. So, if you find your company is constantly stuck in debt because the industry you’re in is taking a nosedive in the stock market, this is also a good time to consider selling.3. Your Passion’s Run DryIf you no longer find your business a thrilling venture, dread dealing with all of your daily responsibilities, and you no longer feel like it’s worth the trouble, inevitably, the company will suffer. Running out of steam, especially early on, is a bad sign, so it’s more conducive to its success if you hand it over to a new owner. It’s a shame to let go of something you built from the ground up, but ultimately, you’re making the best decision for your company’s future by giving it to someone more well-equipped.4. You Receive a Great OfferEven if your business is flourishing, you might want to consider selling if you receive a large enough bid. In fact, redirecting a successful business is much easier than the alternative. However, a new owner might also be able to take your business from a low point and grow its prospects with innovative marketing and business tactics. In either case, the right price should never be ignored.5. Your Business Does Too WellYou’ve built your business, you’ve seen many good years, and now, it’s reached its highest point. So, it might seem counter-intuitive to sell at this point, especially if your business is raking in large sums of money. But with this success, you can truly make a killing from the highest bidder because your company will be in such high demand. And is it really worth the risk of potentially losing out on thousands of dollars if the economy hits an all-time low, or if your services become obsolete? Also, you might only be equipped to handle so big of a business – sometimes, in order to expand, you need to relinquish your hold on the license so that it may continue well into the future. So, congratulate yourself on the good times, and reap the benefits of your years of hard work – you’ve earned it.ConclusionRunning a business is tricky, but keeping an eye out for these telltale signs will ensure that you’re not running the company into the ground or selling it short. Always do what’s best for the company, even if it does mean you won’t be involved with its name anymore.[author]About the Author: Heather Lomax is a contributing writer and media relations specialist for Financial Licensing Advisors. She writes articles for a variety of financial and SMB blogs, discussing solutions to common issues related to developing and maintaining a successful business.[/author]