Starting a company and then selling your business is one of the most rewarding experiences you can have. But how do you know when it’s time to sell up? Selling a business involves so much more than a quick handshake and signing on the dotted line.

Finding the right time to sell, having the appropriate professional expertise, and hunting for potential buyers can take a great deal of time, money, and often emotional strain.

That’s why we’ve compiled some of the top reasons people choose to sell their business to help you know if the time is right.

Selling your business – when shouldn’t you sell up?

After investing yourself in your entrepreneurial venture, it’s likely you’ll also have a strong emotional attachment to your business so it is absolutely essential that you know you’re selling for the right reasons.

If you’re thinking of putting your business on the market because you struggle to cope with the stress and pressure of running your organisation, there are always things you can try first.

Perhaps it may be time to bring on a business partner to help you manage your firm. With your combined skills, knowledge, and experience, you may find that much of the stress you were experiencing is alleviated – or at least shared with someone who understands what you’re going through.

You may also look into working with other companies to take care of certain aspects of your business. For example, outsourcing your marketing rather than managing an in-house team or leaving your financial matters to an experienced accountant could all make running your company much easier. Don’t be afraid to ask for help if you’re thinking of selling up.

Perhaps you’re considering selling your business in response to outside difficulties that could impact on your company – the launch of a new competitor, the introduction of a new law that will make doing business more difficult, and so on. It is important to remember here that things change fast and something you’re struggling with right now may not be a problem (or as big of a problem) as you thought a few months down the line.

Selling your business – what do you need to consider?

Selling your business is not a decision that should be taken lightly. You need to make sure that your reasons are good and that you’ll hand over your firm to its new owner happy.

If you’re eager to start your next venture

If you’ve got a brand new business idea you just have to try out, it can be hard for some business owners to maintain interest in their current venture. This is particularly true if you feel you’ve done all you can towards your current company’s success and you have nothing left to give.

Not only does selling up give you the time and freedom to concentrate on your new venture but the profit you make from a sale could provide you with the seed money you need to get your latest business off the ground.

If you’re looking to retire

After spending years pouring your heart and soul into your business, you deserve a break as much as anyone else. If retirement is calling then selling up could allow you to relax in your later years without the responsibility of a company on your shoulders.

Handing over the reins to somebody else also means your company will continue to grow and prosper in the future. The buyer may wish to retain you as a consultant meaning you can get involved but without the burden or responsibility.

If you’re ready to reap your reward

The chances are that you started out originally with the only goal being to make a success of your company with the intention of (eventually) reaping the financial fruits of your labour by selling up.

Once you’ve reached a certain point with your business, it is perfectly reasonable for you to want to cash in on all your hard work. Whether you then put this money towards your next business venture, you keep it aside for your children’s futures, or you simply want a quieter and easier life is entirely up to you.

If you’ve been given an offer you can’t refuse

Yes, it can be as simple as that. Should a surprise offer arise from a keen buyer, this could be a sign that it is time to sell up. When you know there is a demand for your business on the market and the price is right, you may want to involve a business transfer agent to stimulate competition to buy your company to push the price even higher.

Planning to sell up?

Selling your company can take between 6 and 18 months from the time it goes on the market. Before you decide to put it up for sale, you need to make sure your books are in order so that you can answer buyers’ questions and ready yourself for the buyer’s due diligence. For help and support, please call the Burton Beavan team on 01606 333900 or email hello@burtonbeavan.co.uk.