Eight reasons to sell your business this year
The average UK founder exits their business after about 11 years. Considering the survival mode of the early years and the time it took to reach the first million in turnover, are British business owners exiting too soon? Whether logical or emotional, the reasons for selling vary significantly.
Some common reasons include unexpected acquisition offers, a business in distress, or the owner feeling they've lost the entrepreneurial spark. Health issues, shareholder disputes, or lack of scale can also push a founder to sell.
Here are eight lifestyle changes that frequently motivate business owners to sell.
1. Financial freedom
- Selling your business can offer a significant financial windfall.
- This capital can be used for investments, savings, or funding personal passions.
- A successful sale can secure your financial future and open doors to new opportunities.
2. Reduced stress
- Running a business can be incredibly stressful.
- A sale can significantly reduce the pressures of daily operations.
- With the business in new hands, owners often experience a sense of relief and freedom.
3. More free time
- Many business owners find they have more time for personal pursuits post-sale.
- Activities like traveling, spending time with family, or picking up hobbies become more accessible without the demands of the business.
4. New opportunities
- The proceeds from a sale can fund new ventures or investments.
- Some former business owners use this as a springboard to explore new business ideas or philanthropic efforts.
- The sale provides the flexibility to pursue new challenges without the burden of the previous business.
5. Change in priorities
- After the sale, many owners reassess their values and priorities.
- With fewer business responsibilities, they can focus on personal relationships, health, and overall well-being.
6. Retirement planning
- Although less common these days, selling the business is the first step toward retirement.
- This could mean relaxing, traveling, or engaging in leisure activities they previously didn’t have time for.
- The sale can fund a comfortable retirement lifestyle.
7. Transition to advisory roles
- Some owners remain involved in an advisory or consultancy role post-sale in their industry.
- This allows for a smooth transition while still being part of the business in a limited capacity.
- It’s a way to stay engaged without the pressures of day-to-day management.
8. Increased community involvement
- Post-sale, many former business owners dedicate more time to community efforts.
- This could involve charitable work, volunteering, or participating in local initiatives.
9. Estate planning
- With the financial gains from a sale, many turn their attention to estate planning.
- Ensuring the smooth transfer of assets to heirs becomes a top priority.
- Legal and financial advisors can help structure this process.
Conclusion
Each business owner's journey is unique, and the reasons for selling vary. Some choose to stay involved in the business post-sale, while others fully embrace retirement or new ventures. Whether for financial freedom, reduced stress, or the desire for new opportunities, selling your business can bring about significant lifestyle changes.
