The Kickass Entrepreneur
  • About
  • Blog
    • All Blogs
    • Create Wealth (Investing)
    • Entrepreneur Interviews
    • Featured Top Posts
    • Growing Profits
    • Growing Revenues
    • Marketing
    • Positive State of Mind
    • Real Estate Investing
    • Retirement
    • Sales
    • Selling your Business
  • Book
  • Courses
  • Podcast
  • Resources
  • Contact
The Kickass Entrepreneur
Subscribe
The Kickass Entrepreneur
  • About
  • Blog
    • All Blogs
    • Create Wealth (Investing)
    • Entrepreneur Interviews
    • Featured Top Posts
    • Growing Profits
    • Growing Revenues
    • Marketing
    • Positive State of Mind
    • Real Estate Investing
    • Retirement
    • Sales
    • Selling your Business
  • Book
  • Courses
  • Podcast
  • Resources
  • Contact
  • Business

How to Know When It’s Time to Sell Your Business

  • January 6, 2023
  • 222 views
  • 3 minute read
  • Meg Rivera
extra off
Share
Tweet
Share

Sometimes there comes a time when it is a good time to sell your business. Either by choice or because your business model is no longer profitable, you are forced to sell your business, transfer ownership to someone else or (in the worst-case scenario) simply close it down.

As a business owner or manager, it can be difficult to determine the right time to exit your business. In this article, we will look at when is the right time to sell your business and how to figure it out.

How to know if you should sеll your business?

1. You do not like your business

As your company grows, the start-up difficulties (e.g. finding financing or marketing promotion) start to disappear. Although these problems seem difficult, they are the most interesting for many entrepreneurs. But eventually, they will be replaced by easier, but rather more mundane worries about management and staff. Many business owners then have to adapt to new responsibilities, which are always welcome. If these new problems do not arouse any interest in you and strongly affect your desire to work, then it is time to sell your company with WebSiteClosers Company.

2. The company has outgrown your skill set

It may happen that you, as a leader of your own company, realize that you are less and less involved in its development. This can be a hard truth to accept, but what makes a good entrepreneur above all is the ability, to be honest with yourself. For example, you may be a great salesperson. Thanks to this, your company eventually reached a high level of income but taking into account the change of the business model, additional skills in different areas are required from you as a leader.

3. The market is moving against you

If you recognize that there is a new trend on the horizon that threatens to make your business marginal or completely unnecessary, it is time to think about an exit plan.

When is the best time to sell my business?

The perfect time for getting the most value is the period when your sales and profits are high and on an upward trend. A stable profit trend will allow the buyer to pay a higher price and still meet the return on investment criteria. The presence of good performance also provides the buyer with confidence in projected future earnings.

Price is dynamic and the right timing has a significant impact on the prices paid to acquire a business. External factors such as the economy, industry trends, competition, stock market volatility, investor confidence, interest rates, and geopolitical considerations are cycles of constant change that affect value.

Internal conditions within a company also change. Often in combination with external factors, sometimes independently of these factors. Change is happening and will happen, and it always tends to affect the value of a business – sometimes reducing the value and sometimes increasing it.

A good visualization of the right time would be to imagine the life cycle of your business as a bell-shaped curve, with the peak being the top of the growth cycle. The top is when you have reached a flat growth plane… maintenance mode. Buyers pay the best prices when they don’t see the top when the curve is still climbing upward.

Once the top is visibly broken, buyers may miss the opportunity or may pay prices based on a downward trend and a higher risk factor. If you wait until your revenues are already sliding toward the bottom of the bell curve, you have waited too long. Your business has already started to decline before you did. To get the best deal, you must sell on the growth path.

When to sell a business: conclusion

There is no universal recipe for how do you know when to sell your business. But the very possibility of such a sale is always related to the value that you imagine for the market. Financial results are a consequence, so they can stay normal for a while. But if you stop giving value to the market, you will either have to change or get ready to leave.

Thank you for your interest in THE KICKASS ENTREPRENEUR'S GUIDE TO INVESTING. Three Simple Steps to Build Massive Wealth with your Business's Profits. Please check your email to confirm the book download. Form: 400529

There was an error submitting your subscription. Please try again.

Related Posts:

  • What Is the Right Time to Sell Your Business?
  • How Do You Know When It’s Time to Sell Your Business? It’s Not All About…
  • Is It Time to Sell Your Business? 7 Factors to Help You Decide
  • Sell Me This Pen. I Tackle the Wolf of Wall Street Sales Riddle. Do You…
  • How Do You Know When to Sell Your Business? It’s Not All About the Money
  • How Much Does it Cost to Sell Your Business?
Share
Tweet
Share
Meg Rivera

Previous Article
Paying Finance Jobs
  • Finance

What Are The 26 Best Paying Finance Jobs?

  • January 6, 2023
  • Frances
View Post
Next Article
man looking at his tablet
  • All Blogs
  • Create Wealth (Investing)

These Are The 7 Mistakes Six-Figure Earners Make

  • January 7, 2023
  • Jeff Wiener
View Post
You May Also Like
Chiropractic
View Post
  • Business

The Ins And Outs Of Starting Your Own Chiropractic Practice

  • February 7, 2023
  • Frances
Trucks in a row with containers in the parking lot. Logistic and Transport concept
View Post
  • Business

Make Your Commercial Fleet Fuel-Efficient With These Tips

  • February 6, 2023
  • Meg Rivera
fist bomb
View Post
  • Business

5 Key Elements of effective teamwork

  • February 6, 2023
  • Meg Rivera
bunny fundraising
View Post
  • Business

Bootstrapping vs. Fundraising: Choosing the Right Path for Your Startup

  • February 6, 2023
  • Meg Rivera
multicultural team of cleaners working in modern open space office
View Post
  • Business

7 Ways Your Business Benefits From Commercial Cleaning Services

  • February 3, 2023
  • Meg Rivera
millionaire by 30
View Post
  • Business

The 3 Steps for Success When Starting an Auto Parts Business

  • February 2, 2023
  • Meg Rivera
remote team building
View Post
  • Business

Why Every Company Should Engage in Team-Building in 2023?

  • February 2, 2023
  • Meg Rivera
blurred focus
View Post
  • Business

Cross-selling VS Upselling: Which One Should You Focus on More

  • February 1, 2023
  • Meg Rivera

Join 6,472 Entrepreneurs That Get My Business Building and Wealth Creation Posts by Email

I can teach you how to build a successful, profitable business, and turn that into millions in personal wealth.

Thank you for your interest in THE KICKASS ENTREPRENEUR'S GUIDE TO INVESTING. Three Simple Steps to Build Massive Wealth with your Business's Profits. Please check your email to confirm the book download. Form: 400529

There was an error submitting your subscription. Please try again.

We won’t send you spam. Unsubscribe at any time.

Recent Posts
  • Investing in Multifamily Properties 1
    How to Choose the Right Neighborhood for Your Family: A Guide to Making the Perfect Choice
    • February 7, 2023
  • Chiropractic 2
    The Ins And Outs Of Starting Your Own Chiropractic Practice
    • February 7, 2023
  • Apple Device 3
    The Impact Of New Releases On The Value Of Your Used Apple Device
    • February 6, 2023
  • Trucks in a row with containers in the parking lot. Logistic and Transport concept 4
    Make Your Commercial Fleet Fuel-Efficient With These Tips
    • February 6, 2023
  • fist bomb 5
    5 Key Elements of effective teamwork
    • February 6, 2023
Featured Posts
  • Become a Decamillionaire
    How to Become a Decamillionaire, Grow your Net Worth to $10 Million, and Join the 1% Club
  • how to become wealthy
    The Entrepreneur’s Secret to How to Become Wealthy and Build a Personal Fortune
  • Most Profitable Small Businesses
    27 of the Most Profitable Small Businesses to Open in 2023
Categories
  • All Blogs (1,031)
  • Business (181)
  • Canadian Financial Products (4)
  • Create Wealth (Investing) (129)
  • Entrepreneur Interviews (24)
  • Featured Post for Main Menu (4)
  • Featured Top Posts (23)
  • Finance (39)
  • Financial and Investment Calculators and Economic Data (114)
  • Fitness (5)
  • Growing Profits (71)
  • Growing Revenues (70)
  • Growing Revenues (115)
  • Marketing (132)
  • Millionaire and Business owner interviews (3)
  • Positive State of Mind (68)
  • Real Estate Investing (16)
  • Retirement (13)
  • Reviews (12)
  • Sales (15)
  • Sell Me This Pen (8)
  • Selling your Business (13)
  • Startup Ideas (13)
  • Technology (102)
  • Top Products (4)
  • Uncategorized (54)
Follow us
Author
Jeff Wiener
Jeff sold his company to private equity in 2017 and is now semi-retired. Jeff spends time…

    CHECK OUT MY BLOG, AND SUBSCRIBE

    about
    The Kickass Entrepreneur

    Expand Your Business, Improve Profits, Create Wealth

    Expand your business, improve your profits, and create wealth. Each one of the three can be elusive goals. Follow the right steps, and you, too, can create financial independence. It is possible … you just have to take the right steps.
    NAVIGATION
    • About
    • Blog
      • All Blogs
      • Create Wealth (Investing)
      • Entrepreneur Interviews
      • Featured Top Posts
      • Growing Profits
      • Growing Revenues
      • Marketing
      • Positive State of Mind
      • Real Estate Investing
      • Retirement
      • Sales
      • Selling your Business
    • Book
    • Courses
    • Podcast
    • Resources
    • Contact
    TAGS
    apartment BATNA Business business failure business growth business sale Capitalization Rate CAP Rate cash cash flow Creating Wealth Discipline entrepreneur entrepreneurship excel extra cash Featured goal setting Growing Business investing investment real estate M&A marketing Marketing KPIs Mergers and Acquisitions | M&A | Entrepreneur Blog Millionaire millionaire next door mistakes MUR Peter Principle Profit profitability real estate retirement revenue Revenues sales sales management Semi-Retirement Blog | Entrepreneur Blog | Small Business Blog small business Stagnant stocks success Thomas Stanley wealth
    RECENT ARTICLES
    • man looking at his tablet
      These Are The 7 Mistakes Six-Figure Earners Make
      • January 7, 2023
    • starting your own business
      6 Must-Know Tips For Starting Your Own Business
      • January 1, 2023
    • business loan application
      3 Ways to Use a Business Loan in 2023
      • December 27, 2022
    • bitcoin
      Why Invest in a Bitcoin Casino: Understanding the Crypto iGaming Business
      • December 22, 2022
    • money in grass
      Getting an Affordable Home Loan for the Eco-Home of Your Dreams
      • December 22, 2022
    • saas sales
      3 Proven Tactics to Increase B2B Wholesale Sales
      • December 22, 2022
    The Kickass Entrepreneur
    • Coaching
    • Book
    • Blog
    • Contact
    • Privacy Policy
    • Terms
    • Disclaimer
    • Facebook
    • LinkedIn

    Input your search keywords and press Enter.