Are You Mentally Ready to Sell?

Are You Mentally Ready to Sell?

Posted on August 12, 2019
Business owners experience a variety of questions throughout their time as an owner. Am I pointing the business in the right direction? Will the business continue to prosper? What are my next steps?  As an owner contemplates exiting, they add a new question to the mix.  Am I mentally ready to sell my business?  Selling means transitioning from one source of income, one place of work, and one stage of life to the next.  This change can be daunting and confusing, and future sellers should consider several points to determine if they are mentally prepared to sell their business.

Financial Feasibility

When you sell your business you will receive payment from the buyer, but the business will obviously no longer be a source of income.  If you are selling to retire, ensure that you have saved enough to do so.  If you are not ready to retire, make sure that you are financially secure assuming that there will be a period between selling your business and beginning your next project in which you will not be bringing in money.  This should be your first consideration when determining if you are ready to sell.

Post-selling Plan

In addition to considering your financial situation after selling, think about what will occupy your time.  Whether you choose to buy a different business, tackle a start-up, work for someone else, or enter retirement, make that decision before you start the selling process.  It is important to know that there is something waiting for you after you sell.  If your post-selling plan excites you, know that you are mentally ready to sell your business.

Loss of Control

If the thought of giving up control of your company makes you wince, selling may not be for you.  However, if you feel that losing control is a small sacrifice in comparison to the benefits of selling, take the next step and contact a business broker.  When you sell, you are no longer in charge of major decisions, which can be uncomfortable for owners that have invested lots of work and time into their businesses and don’t want to see them fail.  Trust that your business broker will find a competent buyer, and the loss of control will seem insignificant.

Deciding to sell is a difficult process.  There is a new wave of questions, including those concerning mental preparation.  Before deciding to sell and contacting a business broker, review the three points mentioned previously.  Exiting should be a welcome process without any mental trepidation.