Read the full article at: www.entrepreneur.com
There are many good reasons why a business owners should sell. Rather than waiting until you need the cash because of some desperate financial situation, it’s much wiser to sell when the opportunity is right.
Here’s three good reasons why you should sell your business sooner that later:
1. Opportunity to get liquidity. Running a business entails some sort of risk, and anytime you have the opportunity to get liquidity in your company, you should consider it seriously. Businesses have value, but they don’t have liquidity until they go through a transaction.
2. Strike while the iron is hot. An established business that’s been built up over a number of years is more valuable that when it was in its early stages, but it also has more to lose if conditions change. Business owners should consider cashing in on their investment before a risky situation arises.
3. Time for a new opportunity. After 15 or 20 years building a business, why pass up a chance at liquidity. Here’s your opportunity to cash out and retire or move on to your next business venture. It’s best to always look at your options for the future and be poised for your next move.
If you’re thinking of selling somewhere down the road, start setting goals and preparing now. Consider the timing and when you would want to sell. Start getting your company ready to sell by preparing your financials, building your team, and making your business valuable to the next buyer. For more details on planning your exit and preparing your business for sale, download the BizBuySell Guide to Selling Your Small Business.
“Owners who ponder over selling their business do not always do so out of financial desperation or trouble but usually because they are looking for the next opportunity.”