Are you tired or have lost interest in your current business? Do you need investment to help boost up your business? When, you tell your friends that you are ready to “sell my business,” what are your plans next?
Fighting an Uphill Battle
When you inform your business broker that you are ready to “sell my business,” they are going to ask you why.
Where you have been fighting an uphill battle to either increase your sales or reduce your expenses, you may have found that it is becoming more difficult to make an acceptable profit. This may be the right time to sell your business before the situation becomes worse.
You may have become disappointed and lost all interest in your current line of business. This may be a good time to sell so that you can move onto something else that may be of more interest to you.
For those that have been working 7 days a week and long hours, you may be physically exhausted and ready for a change. Where there is no likelihood of family members being able to help you, employing other individuals will only reduce your profits further.
You may be getting closer to retirement, and this may be the opportunity, when your business is operating well, to complete the sale and take your retirement plan early.
Many businesses suffer from poor cash flow. Often, there is a long lead-in time from buying physical products to manufacturing items and selling, before waiting up to 90 days before payment. Without considering factoring of your invoices, it made be difficult to improve your cash flow.
An investment in your business from an employee or family member may be an advantage for you, but that will reduce your profit margins. This will also reduce the gains you were hoping to achieve when you finally sell the business and move on.
Talk to your business broker and consider the valuation for your business before deciding which actions to take.
