When you first start your business, you likely have goals of where you want to take it, what kind of business it will become, and how it will shape your future. While there’s nothing wrong with this kind of thinking, what ends up happening to some entrepreneurs is a bit of a different path. At some point, you may find yourself asking if it’s time to sell your business.
For many entrepreneurs who have seen their business go from a small idea to a flourishing company, it can be hard to have perspective in this position and think clearly about whether or not selling is the best idea. For a business to reach the point of liquidity, this usually takes a lot of time and a lot of hard work. As your business continues to grow and get bigger, it takes that much more work to keep the liquidity. What this means is that the longer you hold on to it, and the bigger it gets, the more risk is involved. Is this a risk you want to take?
For some people, the answer is “yes”, whereas others see this as the perfect moment to sell their business and walk away with a profit. While there can be a number of reasons you should consider selling, these are the top four.
1.Running the Business Has Become Too Risky
One reason that people choose to sell their company is that the amount of risk has become too high. They are no longer willing or able to take on that risk. It takes a rare type of person to be an entrepreneur and even though you may feel you’ve got what it takes, you could find it’s just not for you.
2. You Are No Longer the Boss
Part of what makes people want to build their own company is the fact they get to be the boss, they call the shots, they are in control. While it starts out that way in most cases, over time as investors come into the fold, this can change. Suddenly you are reporting to them, and possibly partners, which can be a hard pill to swallow.
3. You Have Lost Passion for the Business
It’s hard to imagine a time that you’ll lose the passion for your idea and your business when you first start out, but believe it or not it can happen. At that point, it becomes work and a chore to operate the business, and without the passion driving you, it’s just not the same.
4. You Have a New Idea You Want to Pursue
Entrepreneurs are dreamers, they are idea-people, they can’t help but be creative and always thinking of the next big thing. With that said, you may be ready to move on to that next big thing and your current business could be holding you back.
Look to the Experts
When you find yourself in the position of not knowing whether you should sell or not, it can be helpful to look at other entrepreneurs who have been successful not just with one start-up, but a number. Take a look at Gurbaksh Chahal who started his first company when he was just 16 years old. He has now founded and sold off a number of huge companies in the advertising and marketing industry, and continues to be a major player today. He even went so far as to set up the Chahal Foundation, helping other entrepreneurs achieve success.
It’s all about recognizing when the time is right and then taking that chance.
Think Long and Hard About Selling
Selling off your business isn’t something you want to do with a moment’s notice, instead it should be something you consider and weigh carefully. In the end, it should be about what makes good business sense and what makes you happy.