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Sell When
Things Are Going Right:
Its sounds
simple and logical right? Unfortunately it takes a lot of
discipline and will power to pick the right time to make the
decision to sell, especially when profits are up and the
business is growing and running smoothly. Logically its
makes good business sense to put a business on the market
when sales are still heading North because who knows what
unforeseen circumstances may lie ahead that could adversely
affect your business. This includes personal issues like
illness and divorce as well as broader economic factors like
increased competition in your market niche or a major
economic downturn like we are experiencing now. The bottom
line is you are more than likely going to get the best
possible price and terms for your franchise business when
you can demonstrate to a potential buyer that business has
never been better.
It’s Just
Not Fun Anymore:
I am a firm
believer that individuals should start businesses and
franchises that they truly believe they will enjoy getting
up in the morning to work every day of the year. Ok, most
days of the year. Because let’s face it, starting any small
business today is going to be challenging so hopefully you
did start a business model or franchise concept you enjoy
working with. With that in mind, if you are at the point
where you find you just can’t seem to muster the same
enthusiasm or passion for running your business maybe its
time to consider moving on to the next venture. There is no
reason to feel like a failure or guilty if you come to this
realization. It’s quite natural for many entrepreneurs to
get bored and restless after several years of running the
same business. The important point to keep in mind is not to
let your lack of enthusiasm for the business drag on to the
point where it starts to have a negative effect on the
business- including growth and sales.
Owner
Burnout Syndrome:
As a
professional business broker I can’t tell you how many calls
I get on Monday mornings or Friday afternoon from business
owners who want to sell because they are completely “burnt
out” and just don’t want to do it anymore. That’s fine and
completely understandable as running a small business can
sometimes be all consuming endeavor that can wear and break
even the most rugged and seasoned entrepreneur down. The
point I try to impress on my clients is to be conscious of
the onset and potential negative effects of the “burn out”
syndrome and not to wait to the point where it overwhelms
you and mitigates your chances of getting the best possible
price for your business.
Summary:
Please keep
in mind that all prospective business buyers should
thoroughly investigate any franchise opportunity or
business, obtain all appropriate disclosure documents
available, and seek expert consultation prior to making any
investment decisions. |
