When is the right time to sell your business?

- BY Akshay Arora
Feature Writer, BusinessEx
- |
- Dec 01,2017
- |
11 Mins Read
Selling your business doesn’t mean that your career is over; it could be a new start in life. An entrepreneur takes this decision generally on the basis of these common reasons: when they are not financially stable, they want to retire or they have found a better opportunity. In any of the case, an entrepreneur may plan but they were unable to decide when to actually go for it is.
When to sell your business?
- Unable to match up to Break Even Point
Every business has to go through ups and downs in its lifecycle but that doesn’t mean that you will give it up. If a situation arises when a business is unable to match up to the breakeven point and entrepreneur thinks that investing will not be able to help it then it is better to sell it. If an entrepreneur knows the situation in the initial stage then it will help in raising the best price for the business. The breakeven point is nothing but the total cost is equal to total revenue and it is necessary for a business to at least match up to it in order to survive.
- Better Business Opportunity
In most of the business selling cases, the reason behind the transaction is that entrepreneur has found a better business opportunity. An entrepreneur always seeks for growth even after beginning from the start. You may think that what if you do your business and start another venture side by side but this will just be added pressure on your head. It is better to go for the new opportunities if you think that will amplify your growth.
- Time to retire
Some entrepreneurs plan to work hard on their business while running it and then just enjoy what they have achieved. In India, there are cases when an entrepreneur sold their business just to live with their family abroad. They know that their time to retire has come and by selling the business their hard work pays off. If your time to retire is near then start looking for the buyers to get the best deal.
- A good deal
A good deal is nothing but finding a better offer than the actual value of a business. If a situation like this arises then it is better to close the deal. No need to worry as you will have plenty of other opportunities that you can seek. In Industry, if you follow the trends then you will know that acquisitions take place because the small businesses get the best price for their business. Platforms like BusinessEx are the best solution for selling your business as you can find potential buyers and varied business opportunities.
3 Mistakes to avoid before selling your business
- Selling Plan
The most important step is to plan which covers how you are going to approach the buyer, business valuation, broker, business promotion, financial statements, etc. Most entrepreneurs don’t give preference to planning and end up having bad deal instead.
- Prepare your Financials
The most common mistakes that entrepreneur does is not preparing financials properly. This is basic if a business shows growth and has completed its paperwork then any buyer would give the preference to that business.
- Broker or consulting
In general most of the entrepreneurs try to sell their business on their own just to save a few bucks from brokerage commission. If you are planning then please try to avoid this mistake as brokers and consulting firms help to find the best buyers available in the market. BusinessEx is the best low-cost solution to sell your business.
Conclusion
After reading the above information you must have a clear view on when the right time to sell your business is and what mistakes you should avoid while doing it. But selling is itself a difficult task which should be better leave to pros. There are brokerage firms as well as online portals like ours that help in finding potential buyers for the business.
More from Akshay Arora
Why Entrepreneurs Should Change...
To sustain competition, entrepreneurs have to cope...
October 05, 20213 Min Read
Want to Start a Photography Business?...
A photography business is not primarily based on the...
October 07, 20213 Min Read
Startups Entering the Unicorn Club
In total, 31 companies have turned into unicorns until...
October 08, 20213 Min Read
Start Your Business by Creating...
Before setting out in the business marketplace, it...
October 11, 20213 Min Read
Here’s How Retailers Can Increase...
After the pandemic-led lockdown, bring customers to...
October 12, 20213 Min Read
Startups Attracting Investment...
The funding spree has continued as a cohort of startups...
October 15, 20213 Min Read
Start Your Food Truck Business...
Starting a food truck business is comparatively easier...
October 16, 20213 Min Read
These Sectors Give 33 Unicorns...
All these startups are coming from diverse backgrounds...
October 23, 20213 Min Read
India Gets Its 32nd Unicorn This...
Acko caught the limelight after securing $255 million...
October 30, 20213 Min Read
How Engineering R&D Playing a Crucial...
The Indian ER&D services sector is expected to reach...
November 12, 20213 Min Read
Amazon, Asian Paints and Tata Tea...
Kantar analyzed 418 brands across 30 categories and...
November 29, 20213 Min Read
‘Close the Deal’ Program Initiated...
In the program, personal limitations were identified...
December 04, 20213 Min Read
Recommended for you
- October 05, 2021
- October 08, 2021
- October 11, 2021
Latest News & Articles
- October 05, 2021
- October 07, 2021
- October 08, 2021