How do these fit into my long-term plans?.“You are that which you are seeking.” - Saint Francis of Assisi Do I Need to Sell My Business to Achieve My Financial Goals? If your goals are unclear, then the decision to sell your business will be based on a rocky foundation, and you are unlikely to commit to the sale, which will thereby minimize the value you extract from the sale. There is a limit to how much you can accomplish, and the decision to sell your business should always begin with a thorough and careful review of your long-term goals. You have a limited number of ideas you can pursue in your lifetime. What am I losing now by not pursuing my next business or opportunity in another industry, or a different goal or dream? If so, consider your lost opportunity cost and the cost of remaining in the business. Is my goal to sell my business so I can start another business or switch industries? Prepare a personal financial and tax plan to ensure your exit will meet your financial goals. If so, get your business appraised and develop a plan for increasing the value of your business, then track your results to ensure you meet your objectives. Is my goal to sell my business and become financially independent? If selling your business is critical to achieving your goals, spend additional time planning your exit to help ensure the sale accomplishes your goals. If your business is preventing you from achieving your goals, you should sell your business.
What are my goals, and how does the sale of my business help me achieve those goals?Īlign your long-term goals with the sale of your business.Would Selling My Business Help Me Achieve My Long-Term Goals? You may back out of the sale or later regret selling your business if you sold prematurely and the sale didn’t help you accomplish your goals. The risk of making a hasty decision is that your decision may not align with your long-term goals. A lot of factors must be considered when deciding to sell your business, and considering all of the factors at once can be overwhelming.īut be honest with yourself about your long-term goals. Start the process by clarifying your goals - this allows you to place all other factors within the context of your long-term aspirations. Is the value of my business increasing or decreasing?.How does competition in my industry affect my decision?.Is the timing right to sell my business?.Am I committed to the process of selling my business?.How will I spend my time after I sell my business?.Would selling my business cure my burnout or boredom?.Would selling my business make me happier?.What other goals can I achieve if I sell my business?.Do I need to sell my business to achieve my financial goals?.Would selling my business help me achieve my long-term goals?.When there are no longer questions, answers are no longer bound by them.” - Lao Tzu
Start with these ideas and see where your journey takes you. Everyone’s situation is different, and many people will need to take additional factors into account that aren’t addressed here. Rather, they are meant to be jumping-off ideas to further explore when contemplating the sale of your business. The four factors above are not all-encompassing. Rather, the decision to sell (or not) should be made deliberately, taking all factors into consideration and balancing facts and emotions with logic and intuition.
You can’t decide whether to sell your business by following a simple checklist. But when it comes to your goals (#1) and internal factors (#2), it’s you who must ultimately figure things out. We can provide guidance on the external factors (#3) and your business value and exit options (#4).
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