When is the Best Time to Sell a Business?

Starting a small business is a risky venture, but ifbusiness is slowing down again. If you know you
you are at the point of selling your business, youwill be selling your business at the end of the busy
have already experienced what this is like. Buyingseason, put it up for sale months in advance, but
a business that was started by another personsettle on a final sale after the busy time is over.
tends to be simpler than starting one fromThis allows you, the current owner, to benefit
scratch, but a buyer will still be looking for keyfrom your business for the final time. You want
points before they make any decisions. If you areto get the full value of your business, and this is a
hoping to sell your business because it is failing andway to accomplish that. It is not a disadvantage
you want to get out before losing any morefor the new owner to buy at the start of a down
money, you will not find success in selling. Buyersseason because it gives him time to make any
look for rise in profits over at least the past threechanges and learn the processes of the business
years. If you cannot show such numbers, sellerswhen customers are in a lower quantity.
will be turned off because they recognize a badAs you approach a final sale within a few months,
investment when they see one.cut expenses by lessening advertising and
Hopefully, you have a solid reason for selling yourlowering inventory. Nothing should hurt the
business. Such reasons might include failing health,business, but cutting costs at the end is sensible
death of a family member or intended retirement.because the new owner will most likely want to
Potential buyers will ask you why you are sellingchange the way things are done anyway. Needed
your business and you better be able to back itrepairs and replacements should be discussed
up. Also, your asking price should be supported bybetween the current and future owner before
the statistics of your business.one party or the other takes up the obligation.
If your business has significant up and down timesEvery business deal is different, but these are the
during the year, the best time to sell is right whenbasics to help you know the best time to sell.