Many small business owners who have profitable businesses may not consider selling their business due to lack of awareness or fear of the unknown. However, selling a business is not just about cashing out, it’s about growth and evolution as an entrepreneur. Knowing when, why, and how to sell a business can open up new adventures and opportunities for the owner. There is a valuable lesson from corporate mergers and acquisitions about the importance of exit planning for all business owners, as it allows for a more strategic approach to the future.
There are three main reasons why a business owner might decide to sell their profitable business. The first reason is when they are ready for their next venture and feel the need for a change. Selling the business at its peak can provide the capital needed for a new project or simply for enjoying life. The second reason might be unexpected life events that make the owner reexamine their priorities. Selling the business can become a step towards self-care during difficult times. The third reason is when the owner no longer feels passionate about the business or if the business is struggling financially. Selling the business at this point can prevent further losses and relieve stress for the owner.
One of the biggest hurdles business owners face when considering selling their business is the fear of the unknown. Questions about finding a buyer, determining the value of the business, and what happens after the sale can be overwhelming, clouding judgment, and preventing decision-making. The key is to educate oneself about the selling process, which can provide clarity and empower the owner to make informed decisions about their future. Knowing how to make the business sellable, attractive to buyers, and maximizing its value is crucial for a successful sale.
There are also emotional challenges that business owners face when thinking about selling their business. Feelings of guilt about letting down employees, worry about the future of the business, fear of losing one’s identity tied to the business, and regret about making the right decision are common. However, it’s important to remember that change is a natural part of growth and evolution. Reflecting on one’s journey and understanding the opportunities that lie ahead can help alleviate these fears and uncertainties.
After selling her wellness business, one client found that understanding what made her business valuable enabled her to reflect on her achievements and reignite her passion for entrepreneurship. Taking time to reflect and mull over the next step after selling the business can lead to new possibilities and opportunities. Whether selling now or in the future, it’s not just about closing one chapter, but about the promise of the next one. Embracing change and facing fears head-on can lead to new paths of freedom and success for business owners.
