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10 Reasons to Sell Your Business

August 9, 2010

Running a business is a risk and sometimes to reduce the overall risk involved it’s best to jump ship with a sale of the ship.  In most cases it is obvious pain points that speak volumes and tells you it is time to sell your business, but often goes ignored.  Analyzing your own business you should know if it is time to sell or if you have a fighting chance with your business.

Before selling a business you want to make sure you’ve done everything you can to save your business, however we all know in some cases everything has been done and it’s just time to sell.  You should take note of the warning signs.  Here are some signs that will tell you it’s time to sell your business:

1. On the financial brink
If your finances just can’t take anymore then this is the most obvious sign that it is time to sell.  If you are missing too many bills or you are too far behind in expenses and your business is not able to sustain then selling a business may relieve you of any additional stress.

2. Inherited a business you have no business running
If you inherited a business you know nothing about and don’t even know where to start then you probably should sell.  It’s nothing worse than sitting on a goldmine and not making a penny. 3. Work life and personal life no longer co-exist happily
Family first, that’s how it should be.  If your business is getting in the way of your personal life then maybe its time to sell if you don’t have the luxury of taking long vacations while everything runs smoothly.

4. Health problems that is due to the job
If your business is causing you to risk your health at a rate you can’t afford then its time to bow out gracefully.  Health reasons are valid reasons for selling your brick & mortar.  You must protect your health to ensure your future.

5. You’ve been whipped by your competitors
If your competitors have pushed far ahead of you and you no longer can compete then it may be a sign to sell the business.  Of course you should fight a good fight and make certain you do anything you can to out do your competition, but when you have gone the distance and still come up short then you have to weigh your options.

6. When your business no longer holds your interest
If you are no longer interested in your company or what you do then most likely your business will suffer.  At this point you should consider selling.  One of the worst feelings is waking up every morning to something you hate!

7. When you and your business partner have unresolved conflict
Selling off your part of the business to your business partner may be worthwhile if you no longer can find common ground and get along.  Business partners have fall outs for all types of reasons, sometimes it is best for partners to go their separate ways which may result in one partner selling off their part of the business to the other partner.

8. If your company name and reputation has irreversible damage
If your business name or reputation has been damaged so badly that it cannot be recovered then it’s time to get out.  The problem is if you have destroyed your business reputation that bad then most likely it is going to be a hard sell and you’ll be lucky if you get anywhere near your asking price.

9. Overwhelmed with new growth and new business
Usually when your business is growing you think to hire more people not sell your business.  However, new growth can be overwhelming and if you don’t have the experience or aptitude then you can run your business to the ground.  When your business grows then you must grow with it, if this isn’t the case then a sale may be in order.

10. Change of Lifestyle
You are moving, you have a new addition to your household, your marital status changed, etc.  If you have a new life which doesn’t include your business then you might want to sell.  Maybe you run a dating service, but now you are married and a dating service no longer fits your lifestyle.  Or maybe run a politically targeted business, but you’ve changed your political views.  Sometimes a business can be the only reason for staying in a particular city, getting rid of your business may allow you the freedom to get away or change your life.

Source: bizlinkin.com , August 2010

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