Got a established business, and it is profiting? Lucky you!
But wait! What?
Have you decided to sell it? Or have you been forced to sell it because you can't manage it?
You might confess that you are facing too many troubles while dealing with ordinary circumstances.
Well, then it's okay that you are willing to sell it!
But have you decided what will you do after selling it? Don't book that Lamborghini, because you will not have money! You won't be able to afford it without your business!
I admit, business owners often misjudge the challenges and obstacles between wanting to sell and achieving exist; indeed, many fail to understand the reasons why they might struggle and decide to sell the business at all. But I must tell you, this isn't a worthy decision! Why?
Statistics show that more than 40% of businesses die when they are marketed for sale. And here are five reasons for you.
1. Your Business Can't Exist Without You.
I have seen many profitable businesses, but they can't survive so long without their CEO sitting at the top.
Because the CEO holds all of the critical customer relationships, hasn't delegated the essential roles and responsibilities or even trained replacement, and has staffed most senior positions with family members.
If you sell your business, it is likely to stop making money as soon as that CEO retires, loses interest, gets hit by a bus, brings changes in products, replaced cheap gadgets if the business is concerned with some electronics, etc.
Remember that no outsider will want to own a business where that's a significant risk.
If your business and you cast a cold eye on this reality and initiate to hire outsourced competent to join the business and delegate essential authority to them. In that case, you give your hands to someone else. And worst business life starts here!
2. No Money Is Worth For Losing Your Identity.
Make a plan for your life after selling out your business with the same thought and effort that you invest to launch your business.
Ever thought, how will you get the same passion and challenges in your new life? How will you get back your sense of passion, and community? Etc. Etc.
Before you sell off, do a lot of soul hunting, it is better to realize you will made a mistake in selling up your entire investment.
Not only an investment of money, but the investment of your time, passion, and motivation.
Ask yourself few tough and realistic questions first!
If you do so you won't have to worry about number of risks later.
And see where other owners are at with the results afters selling their businesses.
Don't let the world forget you!
3. Don't Sell Your Passion.
When you're selling your business, remember that, you're selling your passion!
Yes! It is!
The words that especially resonate with me from one of founder who made a great sale for his start-up.
Roger Bryan from Enfusen digital marketing eloquently shared his thoughts on the business transaction, "I have spent years building my first company, later I sold. The day that I have sold was one of the greatest accomplishments of my life. Then as time passed by and the money sat in my bank account as I have tried to figure out what to do subsequently, the regret has started to set in! I hadn't sold my company. Instead, I sold my passion."
I believe, many founders feel a deep sense of remorse once they sale their firm, even if they have made a genuinely great deal.
4. Sharing Of Confidential Information.
Selling business means sharing confidential information!
Don't you think in this digital era, sharing your personal business information is risky? Your business is sometimes linked with your personal life, accounts, family, and so on.
Anyone can get the way to strike your entire life by stilling your data.
Although there are professional ways to secure yourself and your business, you can opt for a Confidentiality Agreement (CA).
But again, until when?
How much can one get protected with the hacking strategies in business?
Don't be a clown!
5. Your Workforces Will Lose Out!
The first year after a union, your workers are uncertain whether or not they'll be fired—stressing everyone out.
It's indispensable today to think about youngsters.
They might be told by the acquiring firm how valuable they are.
But one important caveat!
They aren't told that they are only valuable for the first year or two after the union.
Screw that torture!
Don't let that happen to your reliable employees. Finding new jobs is quite difficult nowadays. With modern inventions, offices don't hire many workers for their tasks.
Think about it!
Many other reasons delivers why you shouldn't sell your business.
Now that you read few reasons, what else you need to know?
Here are few things that you should answer out yourself. If you don't know, then there is a solid chance you won't be happy after you sell. So let's dig in!
- Why do you want to sell? Remember, 'Just Because' is not an answer!
- What will you do after you sell out your business?
- What makes you happy at all? Do you know what gives you the bounce in your selling step?
- What will be your new purpose or opportunity?
- How will your employees fit in this new picture? What do you want to happen?
- How will you get started with your new community? What social groups are you going to join and immerse yourself in?
- What will you do with the money? This may be a massive influx of cash. Don't just waste it at random ventures to fill your tediousness.
Too many business owners leave their company on a massive high after they hit their punch-out number. You don't realize that many decisions you made throughout the selling process cannot be taken back!
Try to spend a long time to think, live, and reflect on the consequences of your obvious decisions. If you don't have a plan for your new business life after selling the current one, there is a very high risk you will be unhappy with the results.
That is a risk not worth taking.
Get the legal advice you need!
Selling a business isn't really worthy, and there are legal considerations that need to be made because your profitable business should not sell.
Instead, we suggest you to think of the ways. You can handover your business to any other third party for certain period. After that, I think you would surely miss your work place and get your passion back!
Happy business ahead!
Ayesha Kalhoro is a keen content writer, currently works at Revounts. You can also call her a deal hunter because of her curious personality she digs out the most competent products and offers available in the town and dispatch to her readers so that everyone can get profited by the current propositions. She also focuses on incorporating diverse topics to keep her readers to keep them engaged, excited and always looks out for what more she can bring to the table.