Summary: Provides a list of some of the top signs that maybe its time to sell your franchise business.
As a professional business broker and franchise consultant I am often asked by small business owners about when is the right (or best) time to sell an existing franchise business. Like most things in life, timing can mean everything when selling a business. This includes choosing the right time to sell a business or franchise that will help you maximize your return on your investment and years of hard work. Here are a few helpful tips you might want consider if you are debating if its time to sell and cash out now.
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.
About Author: Ray Haiber has 14 years experience as franchise sales consultant as well as a professional Business Broker.