When you first started your company, you might have pictured yourself running it forever, or at least, until you decided to retire. Fast forward a few years, and while you still enjoy what you do, you are starting to wonder if it is time for a change. Business owners sell or divest from their companies regularly, for a variety of reasons. Some people start and sell their companies so quickly they’re known as serial entrepreneurs, always on the lookout for the next thing.
You don’t have to be a serial entrepreneur to sell your company. You don’t even have to plans to start a new one once you’ve sold your current company. What you do need is a sense that it’s time to move on and do something new. Here are a few signs that it’s time to divest from your business. When you’re ready to make the sale, a virtual CFO can help you through the process, making sure you sell your business for as much as it’s worth.
You Are No Longer Interested in the Company
Variety is the spice of life. After running a company for years, you might be looking to do something new. You might find that waking up and going to work each day has become a chore or boring, not something you look forward to doing. When that happens, it’s usually a good idea to let someone else take over the company, both for the health of the business and your own health.
In some cases, you might be interested in selling your company because you are ready to retire. In that case, you might want to find a buyer who will help your business thrive into the next generation, without your presence. If you’re not looking to retire, but are interested in taking a smaller role with the business, you might work with your buyer to find a way to remain part of, but not in charge of, the business.
You Feel Like You Are on a Treadmill
If you feel as if you do the same things over and over again with your company, but don’t make any progress or never seem to get ahead, that can be a sign that it’s time to move on. It might seem as if you need to continually spend money or invest in your business, without getting the desired outcome.
While feeling like you are on a treadmill or as if your business has hit a plateau isn’t always a sign you need to divest or sell your company, it can be a strong indication that it is time to move on. Your virtual CFO can help you evaluate your options and choose the one that makes the most sense based on your current position.
The Tide is Turning Against Your Business
Everything changes, and as it changes, the need for certain businesses change. It wouldn’t make much sense to start a company that sells rotary phones today, as most people use smartphones, for example. It might be that your company has reached the end of its useful life and it makes sense to pivot or to sell it to someone else who can take it to the next phase. Often, it’s best to sell your company when it’s at the top of its game before the market starts to change. It can be difficult to predict when a company has reached its peak, though. A virtual CFO can work with you and help you determine what lies ahead for your company and its industry and what the best next move is to make.
Someone Has Made You an Offer You Can’t Refuse
In some cases, the decision to sell your company might be purely financial. You might be happy with how your business is performing and you might still enjoy going to work each day. But then another company or entrepreneur comes in and offers you a significant amount of money to buy your business. In that case, selling might be in your best interest. Your virtual CFO can help you determine whether an offer is a solid one or if you should wait for something better to come along.
If you’re wondering if it’s time to sell you business, the team at New Direction Capital can help you decide. Schedule a call today to learn more.