Running an online business can be wonderfully rewarding. It gives you the freedom to work when and where you want and, hopefully, the financial stability to meet your current needs and also plan a little for the future.
However, there will come a time when you desire change. But it’s always hard to know if now is the right moment to make a life-altering decision. It’s difficult to tell the difference between true stagnation and simple frustration or anxiety.
Consider these top five reasons for selling your business now to help you figure out if the moment has arrived for you to cash out and move on.
You No Longer Enjoy Running It
This one should go without saying, but so many people don’t consider this reason to be as important as it really is. Without being too morbid, we can never forget our time on Earth is limited, and that it can be taken from us at any moment.
There will always be things we enjoy doing more than others, but it’s our responsibility to weed out those things we don’t like and replace them with what we love. Your work is no different.
Ask yourself if you really enjoy running your online business. Do you still feel that same challenge pushing you forward? Or do you feel overcome with dread and anger every time you sit down at your computer? If you identify more with option two, then it’s time to move on. Simple as that.
“But what about the money?” a lot of people will say.
No amount of money is worth your happiness and well-being, so if you can’t approach your business with joy and gratitude, then cash out and begin looking for something else.
You’ve Got Other Projects To Work On
Hopefully, you’ve figured out by now that one of the great secrets of success is focusing on one thing at a time (and if you haven’t, well, you’re welcome). This isn’t to say that you can only do one thing, but it does mean you need to be realistic about what you can and can’t do at this current moment.
There’s a good chance your online business was once a side hustle, and there’s an even better chance that it didn’t become something more until you decided to treat it as your top priority.
So if you’ve found other projects you enjoy working on but don’t get the attention they deserve because of your online business, then it’s time to move on. And since you don’t want to ignore your company and wait for it to die, you can sell it and use the money to get you going on your next venture.
It’s Taking You Away From What Matters
Family needs to come first. To be happy and well, you need to make sure you’re spending enough time with those who mean the most to you. If your online business is preventing this from happening, you need to make a change.
It’s true that there’s never enough time. But work shouldn’t ever be the top priority. Even when you’re making good money, if you find yourself reaching the end of the day wishing you’d spent more time with your kids, partner or friends, there’s a good chance you’re working too hard.
It’s Worth A Lot Of Money
Switching over to more practical, professional arguments, it could be time to sell your online business because your company is worth more now than ever. Get it evaluated, and if it’s worth enough, and you’ve got other things going on, then sell out while you can and invest the money in something else.
This one really aligns with the other reasons; you shouldn’t sell out only because there’s lots of money to be made. But if the business has matured and is making you money, and you find your interest and attention elsewhere, it might be time to cash in on your hard work and move on. Another thing to look out for is industry risk. If you’re worried about the direction of the company, selling out now could be a way to get maximum value before it’s too late.
Generally speaking, businesses are worth 2.5 times their yearly revenue, so use this as a jumping off point. But consider getting a professional valuation so that you can see what your business is really worth.
Growth Has Plateaued
This one is a bit tricky since businesses that are growing are traditionally worth more. But if your company has leveled out a bit regarding growth, and you don’t think you have the time or resources to jump-start it, then you might want to consider selling.
Overall, it’s much better to sell at this moment rather than when sales start going down. As revenues shrink, so does value, making it much harder to attract serious offers. If things have slowed, and you can’t or don’t want to speed them back up, consider selling and starting something new.
If you’re on the fence about selling your business, consider these top reasons why you should. If they apply to you, then it’s time to make a change. If not, stick it out and keep working. But be aware of when situations change so you can sell and move on before it’s too late.