· Identifying the best time to realize your business’s value
· How your business is changing
· Whether you have outgrown your business
The Right Timing:
The most common form of exit strategy is selling the business to a new owner. Important factors to consider when deciding to sell include the state of the economy, particularly the sector your business is operating in, and the health of the business itself. Both of these factors can be addressed by being aware of changes that is happening in your industry and proper planning.
By being informed you will be able to identify the right opportunities for your business, and it will allow you to plan accordingly. What many business owners don’t realize is that selling a business takes time, and trying to sell at last minute might have a tremendous impact on the price of your business. Start planning early and look to sell when your business is healthy and performing optimally – this will ensure maximum returns for your business. If you try to sell your business during slower periods, you may have a challenge in getting the highest price for it.
Adapting to Change:
The face of business is always changing and depending on the industry, your company will likely not be immune to this. Unfortunately many business owners do not realize or do not accept this reality and fail to adapt – to their great detriment.
If you are unable to face these changes it may be time to consider passing the torch before your business gets crushed, and all the hard work you’ve put into it fails to pay off. Recognize the signs telling you it’s time to exit your business.
Outgrowing Your Business:
After a while, some business owners may lose the motivation they once had to see their business thrive. If this applies to you, it’s important to identify this boredom and loss of enthusiasm before this begins affecting your performance and ultimately the value of your business.
Identify whether this is still the right business for you, or whether you are still the right person for this business, and take action. The solution to this issue may be change – for you to move on from the business, and for someone else to take over the business from you. Planning ahead for this will allow you to make the right choices for the future of both you and your business.