Being a business owner means being your own boss. This also means that should you feel the need; you can sell your business.
You own your business, so this gives you the freedom to hand over the baton to move on from it.
So what reasons might there be to sell a business? In this article, we will be going over 4 of the most common reasons to sell your business.
Retirement
Most people dream of the day they can blissfully retire and spend the rest of their days travelling, taking up hobbies etc. All while still having the money to live and thrive. Well to some that dream can become a reality much earlier than the average age.
The state pension age is currently 65. However, for business owners, the option to retire earlier is much easier. This is especially the case for a business that is thriving.
Choosing to retire earlier than the average age generally would indicate that you are not going to be reliant on the government to fund your retirement. So choosing to sell your business and its assets can also add to the penny pot.
Private pension pots can be accessed from the age of 55. This age is expected to rise to 57. Along with the age for access to the state pension which will rise to 67 by the year 2027.
New career goals
Nothing is predictable in life. The same can be said for your career. One day you might suddenly realise that this business you have built from the ground up. Is not what you want to be doing in life.
Having this change of heart is perfectly normal, in fact, it is healthy for us to change things up throughout our life. Or else we fall into the same old patterns that can make life boring and predictable.
So when the decision to choose a different career path becomes apparent. The next step as a business owner would be to sell your business on. Ensuring that, while you no longer want to be doing that job, the legacy of your business lives on under new management.
Financial struggles
Financial difficulties happen in all walks of life. Building up debts is easily done, with credit cards being used every day and loans being taken out. In fact, borrowing a couple of pounds from your friend would still be classed as a debt to be repaid. No matter how small or big, most adults will have to deal with debts in their lifetime.
Running a business does not come cheap. While your business could be booming, the outgoings of hiring staff, paying suppliers and creditors could result in you barely breaking even.
While debt can be managed effectively, for some it can become a genuine problem. When you feel like you are drowning in it all, then that is the time to take action.
Selling your business can help towards funding the repayment of any debts accumulated.
The last thing you want is to end up appointing an insolvency practitioner and seeing everything you have worked for going down the drain. The choice to sell rather than lose everything would mean you could exit with your empire intact!
Moving away
Similar to a change in career. Sometimes you might find that you in fact want a change in the environment. This move could be to another city or in fact another country. This could also mean that, while you have built your business up. It might be time to leave it behind.
Relocating can also be a costly goal. So by selling your business you can add extra funds to help with the move.
More and more people are choosing to start a new life abroad. With the promise of a new culture to become a part of and a better life. There is always the option to relocate the business, but with that, you could lose the already established customer loyalty.
So why not sell the business and see it thrive under new ownership. That way you can move knowing the business you built is still alive and booming.
Final thoughts
Making the decision to sell your business should never be a light one. It will take time and deliberation to determine this is the best course of action for not only you as the business owner. But also for the business, its assets and any staff that work in the business.