Deciding when to sell your business is one of the variables that can change the outcome and success of your business sale. With that being said, many business owners put emphasis on this variable, wondering “Is it worth selling my business now? Or waiting until later?”. Without a crystal ball in our hands, there is no way of knowing what is around the corner. However, there are certain things you as a business owner can do to alleviate risk and feel confident in your decision to sell now (or perhaps wait). Let’s find out what they are…
- Assess the market: Conduct a SWOT analysis on your business and highlight the strengths, weaknesses, opportunities and threats. This is a great snapshot into the current state of the market you are in, and whether there is scope to improve prior to listing your business for sale. A profitable, attractive business will always sell for higher than one that has peaked and is on the way down, so the key here is to make your business look as strong as it can prior to listing it for sale.
- State of the economy: Although not something you can change as an individual, this will potentially impact your final sale price. When inflation is high and the cost of living peaks, spending decreases. Take this with a pinch of salt, as this isn’t a steadfast rule that always applies to all business types and industries, but staying up-to-date and informed on the state of the economy is an important factor.
- How attractive is your business? We touched on this in point #1, but presenting your business in the best possible light is crucial when deciding to sell. Refine operations, improve profitability and ensure your business is equipped with the team and skills to succeed with a new owner. All of these areas make your business more attractive to a prospective buyer.
- Succession planning: One of the big questions to ask yourself when preparing to sell is whether you are truly ready. Creating an in-depth succession plan (otherwise known as an ‘exit strategy’) is key to preparing yourself (and your business) for the next chapter. Want to learn more about what a succession plan involves? Click here to read a blog we’ve created on the topic!
- Seek advice from those who know the process: When it comes to selling your business, the best foot forward is in the direction of a trusted Business Broker. Not only will your Core Business Broker guide you along the way, they’ll also share knowledge acquired through almost 90 years of experience right here in Sydney and the greater NSW region. Knowledge is power, and with a trusted professional in your corner – you’ll be equipped with information that will help you make smart business decisions.
So, is it worth selling my business now?
Short answer = potentially! The only way for us to know is to take the time to understand your business. Get started today by giving the team at Core Business Brokers a call today, at (02) 9413 3818. Alternatively, you can email [email protected], [email protected] or [email protected] to have your questions answered.