Are you thinking of selling your business but wondering if it’s the right time of year? That’s a smart question because timing can make a huge difference to your profit. But sometimes the time to sell a business isn’t controlled by economic or seasonal factors.
Why Sell A Business?
People sell businesses for all kinds of reasons; perhaps they wish to retire, spend more time with the kids, or they are experiencing health problems. Or they might need to free up capital for a new project.
Sometimes it’s simply a case of outgrowing the business, and no longer getting the same satisfaction out of it anymore.
Focus On Saleability
In these circumstances, any time of year is the right time to sell. Why? Because if your heart is no longer in it, it’s best to move on. Not only is this better for you, it’s also better for the business.
The risk is, if you continue on, that your lack of motivation will be reflected in your figures, reducing the saleability of the business.
For some people, selling their business is part of their long-term financial plan. You can ‘trade up’ your business in the same way as people ‘trade up’ their houses and cars.
Ready For A New Challenge
A common business practice is to buy a run-down business with potential, build it back up and sell the business for a profit. And then move on to the next challenge.
Is The Business Market-Ready?
Is there plenty of potential buyers for your business? What needs to happen for your business to be market-ready? Being market-ready is a great benchmark to keep in mind when you’re getting ready to sell.
Selling Seasonal Businesses
Depending on your industry, there are certainly better times of year to sell than others.
For example, if you own a retail business, you should aim to market it after Christmas or Easter. These are generally the busiest times of year in retail, so your books will be looking healthy.
If you are selling a hospitality business, such as a restaurant, autumn is a great time to sell, after the busy summer holidays.
Business owners that are unaffected by the seasons must consider other factors, such as location, market share, current condition of the business and projected growth. Outlining the projected growth of a business is a powerful marketing tool, especially if your business isn’t currently thriving but you can show good growth in the future.
Economic Factors
Keep your eye on primary economic factors, such as interest rates, government policy, labour costs, and taxes as these all have an influence on when to sell your business.
Test The Market
You could advertise your business for sale simply to test the market. With little outlay, you could assess the level of enquiry and get a feel for what’s required to maximise your profit. If you take on board the responses and make improvements, you never know, you might sell for a tidy profit!
Sell your commercial property or business privately without business brokers. We advertise your business for sale or real estate listing in our go-to website, national glossy Coast to Coast Magazine and major real estate websites reaching many motivated buyers. Call now to sell your business or property 1300 793 792 or email [email protected].