Business owners are left with two options in regards to the future of their business and its operations. The first option is to pass the business down to children, grandchildren, or some other form of family or friend. The second option is to sell!
While some value the idea of passing a business down through generations of their family and friends, some individuals think it’s better to sell their business when they are ready to move on. Here are the main factors driving business sales.
If your business is thriving, selling is a common next step for business owners. This is because thriving businesses are often purchased at well over market value, as investors are looking for a company that can instantly start making a profit. The more valuable the business, the more money it is worth.
As much as sentimental value is a core element of owning a business, profit and business value are even more important. After all, business owners own a business in order to make a profit and fund their future ventures.
A self-explanatory need to sell a business would be for retirement. Selling a business is an excellent way to fund an individual’s retirement. It’s important to thoroughly plan for retirement. Even with funds set aside, selling a business can give you that extra amount of money you need to pay off debts or take the ultimate dream vacation with your family.
If you have a dollar amount set in mind for retirement make sure your business value, combined with the amount you already have saved up, matches your ideal goals. Retirement is one of the most common reasons why business owners sell.
Read more about some of the current businesses for sale on our website!
With the various factors that affect business value, location is one of the most influential. Locations that may be thriving for your industry at the time may not be as successful in ten or twenty years. As time goes by, many things change including locational value to business property. For example, maybe crime rates go up in your location for a few years and significantly affect your purchase rates when customers feel less comfortable coming into your store. Or, perhaps the per capita income of the area has significantly decreased.
When dealing with a locational value problem, business owners are left with two options. Seek business consulting services and find a new location to relocate their entire business to, which would require new employees, suppliers, customers, and more. Or they could sell their business. Selling seems like the best option for a lot of business owners in this type of situation.
At Murphy Business, we understand how overwhelming and complicated selling your business can seem. Finding the right buyer at the right rate is a lot of work. That’s where we come in. Our experienced team will help you find the right buyer for your business and support you through each stage of the selling process!
Contact us for more information and connect with an expert today!