At some point during the running of your business, there may come a time where you’ll have to sell it on. The reasons for this vary from business to business and are dependent on both professional and personal situations. No matter whether the sale of a business is voluntary or involuntary, it’s always going to be an emotional time - you’ve put money, time, effort and energy into the making of it and stepping away from what you’ve built up will always be difficult. That’s why, at McAlister & Co, we offer corporate recovery services and advise business owners on the best options for them, guiding them through the whole process. If you’re still unsure about whether or not selling is the right thing for you, the following blog post highlights the main points to consider in regards to selling a business.
1. Financial Difficulty
Running a small business involves a lot of risks. You may need to borrow money during the start-up process, meaning you might be under pressure to ensure the repayment of these loans. If the business isn’t making enough money, however, you can’t realise the full potential of the business - for example, you may be struggling to pay employees and fighting to cover costs.
Therefore, if you need more liquidity, you may want to consider selling your business, which would be particularly advantageous if your business already has a high value. At McAlister & Co, we can advise you on the best options. Our team of Insolvency Practitioners have years of experience behind them and will assess your business’s individual financial situation before guiding you through the right process.
2. Poor personal health
Being in control of a business is stressful for anyone, whatever the industry. Exhaustion, stress and anxiety can all build up during the day-to-day running of the business as well as the pressure of being able to meet deadlines, keep on top of finances, and ensure all employees are content. This could lead to a decline in mental wellbeing, which is one of the most common reasons why some business owners choose to sell their businesses. A deterioration in general wellbeing should always be a red flag for business owners. After all, it’s always best to prioritise your health - and taking some time off to restore your health and wellbeing will help you make a success of your productivity in the future should you decide to start another business later down the line.
3. Time for change
You may consider selling your business simply because you want a change! Over time, personal interests change and many want a fresh start to consider new opportunities. It can be difficult to admit, but you may even start to feel like your role isn’t as interesting to you as it did when you first started the business, or perhaps you just don’t feel excited by it anymore. And this is okay - losing passion for your business is a good sign that you should consider moving on and selling it. Don’t let your own interests affect the health of the business; sell it on to others who are excited about it so that it can move on and continue its success.
Other external factors, such as family obligations and retirement, may arise which are also key considerations when your personal life becomes a conflict to your business. But it doesn’t have to be all doom and gloom: if you wish to move on, you could use the funds from the sale of your business to start a side-hustle or franchise that requires less of your time but equally provides you with greater job satisfaction.
Assistance from corporate recovery services
Want some advice on your business finances? We’re here to help. McAlister & Co are licenced Insolvency Practitioners who offer corporate recovery services, specialising in helping business owners to navigate financial difficulty. If you’d like to have a free, no-obligation consultation with a member of our team, just contact us to find out more about how we can assist you.