There may come a time during your entrepreneurial journey when you need to decide whether or not to sell. Maybe business is booming and sales are thriving. So how will you know when it's time to hang up your hat and walk away?
Regardless of the circumstances, it can often be difficult to see the signs that will lead you to the correct decision. To help, 11 members of Young Entrepreneur Council explain what leaders should be looking for as an indication that they should sell their businesses.
What's one sign it might be time to sell your business? What should a leader be looking for, and why?
1. You've plateaued
How much further can you take the company? Often, entrepreneurs look to sell their businesses when they have plateaued in their ability to either maintain or grow them. Some owners may be happy to keep things as is, but if you're more interested in seeing it live out its full potential, an acquisition might be best in order for it to continue thriving. —Firas Kittaneh, Amerisleep Mattress
2. You're dreading your work weeks
If you typically work Monday through Friday, and by Saturday are already dreading going back to work on Monday, then it’s time to move on. If your heart and soul aren’t in your business anymore, then results will start to drop. You should have an exit strategy in place before that happens and recognize the signs so you know when to start implementing it. —Jonathan Prichard, MattressInsider.com
3. The market is moving against you
If you notice an upcoming trend that threatens to make your business irrelevant, it’s time to sell your business before it’s too late. For instance, if you’re running a boutique hotel, the thought of Airbnb should give you sleepless nights. While you might be lucky enough to see the storm coming, the escape strategy might not work if you delay. —Candice Georgiadis, Digital Day
4. Your personal life is suffering
Selling your business can mean growing it, rather than losing it altogether. A peer I know sold his venture to a larger company because he couldn't deal with customers' needs and he wasn't there for his family. His business became part of a larger firm and he got more support and resources and has been doing well since. If you're struggling and not living a full life, consider selling your venture. —Blair Williams, MemberPress
5. You don't feel a connection anymore
I've disinvested from businesses when I realized that they simply did not fit into our portfolio and that we didn't have the skills or the motivation we needed to give them the attention they deserved. When you've worked hard at a business but feel virtually no growth or connection to it, you have a sign that it might be better off in other hands. —Syed Balkhi, WPBeginner
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6. You've lost your passion
If you're finding that it’s more and more difficult to find your passion or excitement about your business, it might be time to consider selling. Yes, there are ups and downs of owning your own business, but you'll know when your heart just isn't in it anymore. Sometimes the emotional aspect is just as important or more important than any financial decision to sell. —Shu Saito, Fact Retriever
7. It brings you more pain than joy
It’s time to sell when the business is bringing you more pain than joy, and when even the thought of having someone else run it stresses you out. I had a friend who owned a small business in San Francisco, and whenever I saw her she seemed depressed, even though she scaled the business and was profitable every year. She decided to take a sabbatical to write a book. Then the pandemic hit and she downsized, and now it seems she's happier than ever. —Givelle Lamano, Lamano Law Office
8. There's no more room for growth
If a founder reaches the point where they no longer feel it’s possible to grow as an entrepreneur by leading the business, that’s a good indicator that it’s time to at least consider selling. Some folks may welcome a steady business that doesn’t change much from year to year, but I would argue that true entrepreneurs need to feel challenged by their business to feel fulfilled by the work involved. —Richard Fong, PageKits.com
9. You have a good offer
“Sell high, buy low,” as they say. There comes a time in your business when another company will really want it and be willing to pay top dollar for it. These deals might not always be on the table, so sometimes it's good to take a great offer when it's available. You can always start your next venture later with your new cash. Just make sure the sale also serves your investors' interests. —Andy Karuza, Base64.ai
10. The bad days outnumber the good
Business leaders should watch out for how they feel. We have days when we want to bow out. It's when those days outnumber the others that it might be time to sell. It's a sign that you might have reached the peak for the particular company, and you're ready for a change. —Jared Weitz, United Capital Source Inc.
11. Your pockets and heart are complaining
If you're looking for signs coming from the financial aspect, see if the ROI has been negative for a long time. For a psychological aspect, check if your peace hasn't been found for a long time. If both your pockets and heart are complaining, it's time to consider selling your business. —Daisy Jing, Banish