Some online business owners form companies in hopes of passing them along to future generations, but many entrepreneurs go into the business with the intention of growing their companies in order to one day sell them for a profit. If you’re in the latter category, it’s important to know exactly when it is the best time to sell. Choosing to sell too soon could mean getting less than the full value of your company, while waiting too long puts you at risk for changes in the market that could decrease the value of your business.
So when should you consider selling your business? Here are three possible indications that it’s time to move to sell:
1. A Sharp Increase in Value
The best time to sell an online business is when you believe it’s reached its peak. While you can’t see the future and know what lies ahead, there are moments when you know that your business is booming and that for at least a short period of time that performance is stable. Trying to ride the profitability wave for as long as possible can be a mistake, as an unexpected downturn that you can’t bounce back from could permanently lower the value of your company. Determining when to sell based on value is largely a matter of instinct. If you’ve recently enjoyed rapid growth or had another major uptick in value, the time could be ripe for selling.
2. Risk Fatigue
Owning a business, even a well established one, is a risk. It doesn’t matter whether you financed your business or used your savings to start up your online company; there is always money at stake when you own your own business. When you’re first starting out, that risk is part of the excitement and can be what keeps you going and motivates you to succeed; however, people can only take so much stress and uncertainty. Many business owners find that at some point, their tolerance for risk greatly diminishes. Worries about what lies ahead can take the enjoyment out of present success and leave you in a constant state of anxiety. If you’ve reached that point in your business where you’re hesitant to make decisions and fearful of the future, it may be time for you to plan your exit. After all, you may be unknowingly passing up opportunities that could allow your business to grow.
3. Readiness to Move On
Some people start online businesses in a field that they are passionate about that they can continue to work in their entire lives as happily as can be. Others launch online businesses to meet a certain market demand, and while they’re passionate about success, they may not feel personally invested in their niche or industry. If that sounds like you, you may find yourself becoming bored or unfulfilled by your online business at some point, even if it continues to be very successful. When it gets to be that you’re no longer thrilled by even big successes or you find yourself starting to think about other endeavors, the time is likely right to sell. Moving on to something else now can allow you to profit from your business’ success and give you funds that you can use to pursue another idea or passion.
Getting the Most for Your Business
In addition to considering the right time to sell your business, you also need to ensure that your business is ready for sale. This means having the right financial documents prepared, ensuring that you have made the proper investments in technology and having the right executive team in place to make your company as attractive as possible to potential buyers. You also need to make certain that news about the sale of your company reaches the right type of people, those most likely to be interested in purchasing an online business like yours. Many different types of people today are interested in buying established online businesses, but each business type appeals to a different type of prospective entrepreneur.
An online business broker can help to simplify selling an online business, so that you can get the best possible price when the time is right for a sale. A broker can help you ready every aspect of your company and will do the work of promoting the sale and finding very interested, highly qualified buyers for you. To speak with an online business broker and learn more about how you can get help with a successful sale, contact us today.