When to sell your business

For business owners, it's not always easy to know if and when they should sell their company. When you have professional investors, have employees who count on you for their livelihoods, your business is most likely the result of years of hard work and the decision of whether to let it go or not can become very hard and confusing. Selling your business is not a process you can totally turn over to a brokerage firm. You will be the main player throughout the process.

Here are some key indicators that will help you to take the right decision...

•    Financial considerations

Debt is the enemy of every small business If you are borrowing money on a regular basis to smoothly run your business then it's time to look at some alternatives. It’s generally accepted the logic that when existing liabilities of the business are greater than 200% of its current assets then business is unlikely to recover. To recover from that situation you can sell some shares of your company. Financing is an opportunity to be creative.

•    Sales

Are the sales declining? If yes then it means that customers have no more interest in your product or service. It's a great time to think that what factors are responsible for my lower sales. If you can't sort out this problem then it’s a very good time to sell your business. It's also wise to keep your plans confidential until the sale is imminent. This will prevent a negative reaction from the customers and suppliers.

•    Slow Business Growth

Let’s suppose you have started your dream business 20 years later and today its value is same as before, you are not making any reasonable profit, you are working so hard then according to most business experts you should sell your business.

·         You have lost the passion

Do you remember the days when you had newly opened the doors to your business? You felt like the whole world was in front of you, your dream was coming true in front of your eyes. But now all have changed

Ask yourself the following questions:

o    Do I still have a good feeling for the business?

o    Would I rather be doing something else?

o    Am I working too many hours?

o    Is my business model no longer reliable?

These small questions will put you in a better position and think rationally about your business sale. If you are thinking that you have lost the passion for your business which you had a few years back then it’s the time to take the big decision.

CBC Business Brokerage firm is a highly successful Business Brokers in Sydney, facilitating the sale of business for all parties. We can help you to secure the right and relevant business of your need, which is also aligned to your skill set.