When is the Right Time to Sell My Business?
When to sell a business depends on a variety of factors. Of course everyone's situation is different but there are some basics to take into consideration.The Market
First of all, you will want to review the overall market situation and see where your business fits in. If your business is in the early stages and you expect to experience decent growth in the near future it is probably best to hang on to the business if you can. However, if sales are booming and profits are great, it might be a good time to sell since you will be more likely to get a higher price for your business than if things were on a downswing.
When you do your market analysis, think about how the future looks. Does it appear that your product or service will still be marketable in the next few years? If what you are offering is on the verge of becoming obsolete, consider selling before it does.
Competition
Analyze what is happening with your competition - is your business keeping up with the other players; are you outperforming the others? It is a good time to think about selling your business if you are outperforming your competitors especially during a recessional cycle of the economy, since that factor would most likely command a higher price.
On the other hand, if new competitors are entering the market and you think they may affect your sales negatively, that sends a signal that the time might also be right to sell your business. Get a jump on it before the changes occur and your sale price would go down.
Personal Needs and Circumstances
On a personal note, it is important to consider whether or not your business is a match for your standard of living. It is possible that at one time the income worked for you and your family, but your needs are no longer being met. This indicates the right time to sell your business.
Another reason to sell may be due to other changes in circumstances. If you find that the business is no longer what you really wish to do, you may want to sell. You may have interest in starting a new venture instead. Or are you planning to retire? Do your research ahead of time and figure out how you want to pursue the sale.
Broker/Online Service
Finding a competent broker or an online service may be your best bet to assist you in selling your business. The use of Internet services is an efficient way to advertise your business in addition to being less costly. Here at BusinessMart.com you can list your business for as low as $20.99 per month.
Conclusion
Finally, when you are ready to sell think about how you can make your business the most attractive to buyers. Also, remember that timing is the key to making the best deal.
About the Author
BusinessMart.com has become the fastest growing business for sale search engine, helping buyers and sellers of small businesses and franchises. BusinessMart.com has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. BusinessMart.com has thousands of businesses for sale in the US and Canada.
*** You may use this article on your website as long as the "About The Author" box is in place with all links exactly as above and the article or any links in the article are not altered. ***