INTRODUCTION — Series: Why Selling Your Business Can be the Best Decision.
Many things influence the high level of stress that a business owner faces, including the need to succeed and keep up with the competition, maintaining a healthy work-life balance, and managing the many financial/administrative elements of running a business. One may have to define clear KPIs, draft out a comprehensive business plan that outlines your revenue and profitability goals, build a strong human resources team to help hire the right employees, and generally implement the right tools to support your growth strategy.
To successfully deal with these problems and flourish as a small business owner, you must have a well-thought-out strategy for your company and, more significantly, an understanding of the market in which you operate.
However, what happens if after all these nothing changes? What else springs to mind when all of your efforts to develop the business have been frustrated by a variety of unavoidable circumstances?
SELL YOUR BUSINESS!
Selling your business can be one of the best decisions you ever make. By this, you stand the chance to gain several rewards, financial and non-financial.
Hong Kong’s billionaire, Sir Li Ka-shing is one of the many beneficiaries of the financial rewards associated with the sale of businesses. CK Hutchison Holdings, a conglomerate managed by Sir Li, nurture new businesses and then sell them off when it becomes valuable. In 1999, the company made a huge profit of $15.12 billion from the sale of its interest in Orange, a French multinational telecommunications corporation, to Mannesmann Group. For selling 20% of Hutchison’s ports business, Li made a profit of $3.12 billion and just recently, news spread that this business tycoon and his son have agreed to sell their jet-leasing business to Maverick Aviation for $4.28 billion. Whoosh whoosh!
No matter the rewards you are after, financial or non-financial, selling your business is a great way to gain several rewards. If you are the type of business owner that needs family time, has a change in family circumstances, runs a great business but is frustrated, or maybe you just want to gain the financial rewards like Sir Li Ka-shing, this is for YOU.
To easily attract the kind of investors you need to buy your business, as well as wet their appetite well enough to make them willing to give you the rewards that you are after, you will need to at least show that your business earns more than 500k dollars in revenue. It actually does not matter if you have cash flow problems.
Another way to gain investors attention is to have a great management team in place. You will need to show the credibility of the management team and remove all concerns that the investor might have about the day to day operations of your business after you have sold it and left the building.
In my next post, I will be going through how reducing your losses and moving into a new area of interest is a key benefit of selling your business.
For questions, feel free to reach out to me on LinkedIn.
