The first question a buyer always asks us is, “why is the owner selling? What’s wrong?” In most cases, there is nothing wrong at all. There are numerous legitimate reasons that incite a business owner to sell.
Here are 6 legitimate reasons sellers wish to exit:
You love your business, it’s in good shape and you have a great team…but you’re simply just tired of doing what you do. You feel exhausted and lack interest in day-to-day operations, and you know it’s probably time to let someone else take over.
“Why don’t they just hire a manager?” is something we often hear from buyers. Well, because managers still need to be managed - still creating work for the owner. Second, many small businesses do not have excess enough earnings to pay a manager and still provide income to the owner.
2. You’ve Reached Financial Goals
Congratulations! You met your financial goals, you can now go live on the beach and get served piña coladas just like you’ve always wanted.
3. Stunted Growth
You see opportunities for growth, but you’re unable to achieve them yourself. Does this mean growth is not possible? Of course not, it may just require a lot of investment or operating experience (marketing, sales, business development, etc.) that you don’t have. Perhaps it’s time to pass the torch to a new operator.
4. You’re a Serial Entrepreneur
You love to build businesses, but have the attention span of a squirrel. Watching your dreams and goals come to fruition is rewarding and exciting. But, once you’ve done that, you’re ready for the next challenge. You have inspiration to work in a variety of industries. You know it’s time to sell and invest in your next big move.
5. Other Opportunities
Perhaps your partner picked up their dream job in another city, or one of your suppliers makes an employment offer you can’t refuse. In any case, you’re ready to leave your successful business and capitalize on a new opportunity.
You’ve worked a long time for this, and the time is finally here. Spending more time with family, travelling the world, buying that beach house - whatever your dreams are, the time has come to live them.