This article was written by Ed Hatton and first published by Entrepreneur Magazine as a part of the Selling your Business feature in August 2014 see copyright statement at the end of this article
When is the right time to start thinking about selling your business?
The best time to think about selling your business is when you first draft the business plan. This sounds bizarre; entrepreneurs planning a new business are filled with visions of growing the businesses, employing more and more people, branching out. However a key part of business planning should be to record your objective in starting or buying the business. This could be the need to be your own boss, wealth accumulation, social good, desire for power or others. Many entrepreneurs open or buy business with the sole intent of improving its value so that it can be sold at a large profit. Contrast this with others who build businesses in fields that interest them, and the business becomes the sole passion of the entrepreneur. If this business is sold the entrepreneur will have lost their primary interest in life. Restraint of trade is usually applicable to business sales, so the entrepreneur will not be able to start again in the same field.
What happens after?
What happens after the sale? Will you retire, go into a different field, work for charity or mentor young entrepreneurs? Or will you become bored, restless and depressed, with nothing to fill your empty days? You will probably have been working intensely, travelling a lot, taking tough decisions, overcoming difficult problems and suddenly all that goes away. If you have nothing to replace that lifestyle you will need to adjust. Continue reading