When is the right time to exit your business?

Starting a business is not a child's play so it is essential that when entrepreneur exits from it he/she get the best deal for it. To know when to exit, given below are some pointers.
  • BY Akshay Arora

    Feature Writer, BusinessEx

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  • Jan 29,2018
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  • 9 Mins Read

An entrepreneur starts a business with an aim to make it successful but in order to do that one has to overcome all the barriers existing in the business environment. But those who fail to succeed; they must prepare an exit strategy as when and how to sell their business. It is hard to determine when is the right time to sell your business but not impossible.

Starting a business is difficult and needs a lot of hard work which you must have invested in so it is vital that you get the most out it when you make an exit. But selling a business is a very crucial step which needs a perfect timing to gain the most out of it. So let’s see how to know when the right time to exit your business is.

When is the right time to exit?

Forecast Market Downturn:

If you have researched and anticipated when the market will go south then you must consider of selling your business. Selling before market face downturn will help you get a good price. You must know that some products demand always stay the same as they are the basic need of people then this method will not help you determine whether to exit the business or not.

Lose Interest

Sometimes a person just loses the passion they started their business with which maybe because of less activity in the business or at small scale then one must exit from their business. But exiting from the business doesn’t mean that you can’t find your passion again if you have interest in something else and there is demand for it then you can buy a new business in that segment from online networking portal BusinessEx. 

Breakeven Point

It is essential to analyze cost from time to time as well as the profits of the firm. If the cost is below the breakeven point which is both fixed cost and variable cost is more than the income then you must analyze how to overcome that if you are unable to do that then you should exit from the business. It is the most logical solution as one cannot keep on bootstrapping its business and still stay in the loss.


In some cases entrepreneurs are just had enough with the stress and work and plan to relax then the best option to do is either get into a joint venture and become a silent partner or sell your business at a good price and relax for the rest of your life with the fortune money you got.

Unanticipated Offer

Sometimes there are situations that made you exit the firm like if you get a good price for your business whether it sudden or not you must give a thought to it as it is hard to get a good deal upfront. It is beneficial for you as you can make a profit from and even get to keep your dream because you can always start again.

Narrow Market for Product

If you ventured into a product which has a narrow market then there are high chances that some big company may propose to buy your business. It is good to sell your business to a big company as you get a good deal in return.


Making an exit could be essential sometimes to stay in profit but to know when to exit is essential in order to get in profit. There are situations mentioned above that will guide you and also the best option to get a good price is to sell your business on online networking marketplace like BusinessEx.

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