Beginnings are always easy but endings? Endings are tough. There is so much romanticism and optimism surrounding the start of something. But the end is always seen as something inevitable but sad. To sell your business should not necessarily be seen as an ending though. Maybe it’s just a new chapter?
Endings can be transformative. Think of it as a chance for a fresh start or a new chapter. And if you’re not closing the book but are instead merely passing it along to someone else, then surely it’s not a real ending anyway?
As a business owner that’s been in the game for a while, you might have reached that stage in your life where retirement or moving onto a brand new project both seem like viable options. If the only thing holding you back is the thought of handing over the keys to your empire, perhaps it’s time you took stock of what’s really important.
Exiting a business you might have spent years or decades building and nurturing is never going to be easy and there is bound to be an element of trepidation involved. But are the practicalities of selling your business and all the emotional implications that come with it preventing you from moving on and enjoying a richer and fuller life?
It might be time to ask yourself if you’re ready to sell your business. But first, the following questions should help you to decide whether or not you’re ready to take the next step.
Would you rather be doing something else?
Ask yourself what you’d rather be doing right now – chasing up invoices, wooing clients, and working yourself to the bone 70 hours a week – or just about anything else? If the answer is genuinely the former then you might still have some miles left on the clock.
If it’s the latter, and you can’t help but think of the things you’d be able to accomplish if you weren’t spending every waking hour worrying about the business, it might be time to consider a business sale.
Are you prepared for change?
Change is difficult at the best of times and it often brings with it all manner of logistical and emotional upheavals. These can prove just as harrowing as the thought of steering the company ship for another decade. It’s a fact that most successful entrepreneurs are control freaks at heart and the very idea of stepping down means relinquishing control, which is not something that comes naturally to most of us.
For most entrepreneurs, work and identity are invariably intertwined and unpicking that knot will always be difficult. But if you can honestly say you’re prepared for the changes that will follow as you step back from what could be your life’s work, it might be time to move on.
Can you manage your finances?
One of the main perks of running your own business is the financial freedom it brings with it. As an entrepreneur, you’re most likely an optimist; there’s always that new contract to chase or that next deal to be done. Retirement or stepping down from a business requires a sea change in how you view and manage your finances and you might not be ready for that right now.
Selling up will make your finances more predictable by default and depending on your situation this is a two-sided coin. It might be more secure, but the endless enticing upside will be lost. Are you ready to make this move and budget your finances accordingly? Or are you not quite ready to step away from the chase just yet?
Have you done your housekeeping?
Selling a business is a lot like selling a house. But while baking a fresh loaf of banana bread and putting a pot of coffee on isn’t going to make your business more sellable, having your business in good order is going to make it a much more appealing prospect for potential buyers.
If selling your home is all about making sure the cracks are painted over and the carpet stains are ironed out, selling your business is all about the little things that you might overlook on a daily basis. Are your client contracts up to date? Are all the accreditations you need to trade successfully in place? Are appropriate employment contracts in place with everyone so nobody feels like you’re leaving them behind without a job? Is the lease on the building up to date? These are all boxes that need ticking before you can even think about handing over the keys.
Are you talking to the right investment partner?
This will be one of the biggest deals of your life, so choosing a suitable partner to take this journey with you is absolutely crucial. Choose someone that understands you and your business. Someone that has done this kind of thing before and shares a similar business outlook. Choose someone that can bring what is required financially to the table and understands the legacy you want to leave behind.
Do you want a red-braced corporate raider who will strip and flip your life’s work with a crooked smile? Or do you want a partner that empathises with your situation and will do everything in their power to make the transition comfortable and ensure all your needs are met?
If you’re more interested in the latter than the former, contact us at Perpetual Equity today and we’ll talk you through your options. As entrepreneurs ourselves, we know what it takes to run a business and know how hard it can be to step back. So let us take your hand and guide you into the next chapter of your journey.