Exiting a business takes a lot of planning and preparation. One of the initial first steps you need to consider is: when to exit.
This can be a tough decision to make, but there are a few factors that business owners might consider helping make the decision easier:
- What is your current commitment and dedication to the success of your company?
- What are your exiting goals and objectives?
- What loose ends would need to be addressed within the company?
Growing a business takes time, effort, and energy, and it is something owners must be passionate about doing. It is common for potential buyers (and employees) to sense when owners are not motivated to run their business anymore. This can adversely affect the operations of the business, including sales, profitability, and ultimately the selling price. The owner needs to be as motivated as possible for the succession to be a success. Another factor that leads owners to sell is their available financial capital. If a company does not have the necessary capital to advance to the next level, it might be time to exit.