At what age do you plan to retire? Are you living to work through to your eighties? Or are you looking to retire and be relaxing on a beach before you even hit your thirties?
With the modern economies of the digital and real world, both of these options are very real possibilities. Companies which are barely even a few years old, are selling for multi-million, life-changing, values.If you have never heard of MySpace, then you are not in the minority. It was the precursor to Facebook and Twitter. It had everything that the digital market needed at the time. Once it had hit the 100 million account mark, there could be denying it’s market dominance. So, the company founded merely 5 years before, was sold for $580 million.
The change in ownership also brought about a change in the company dynamics and the speed with which it could implement change. The original creators were fired and new directions were explored.
So, if you haven’t heard of MySpace, then you probably can guess that it went downhill pretty fast. Too fast for MySpace to even know what was going wrong. Other social media sites were popping up every day and users were leaving faster than they ever joined.
Now the original creators, Tom from MySpace, could have kept the ownership, worked the job and the site to keep it’s market dominance and then pull out their share of the profits. Or they could have sold it and lived a life of luxury.
This brings us to the real question. Why should or would, you sell a company. Even if you can see that there is a huge potential to be made from driving the business through some changes in the near future to a huge profit.
A quick Google search on Tom from MySpace will show you that he is retired and has a keen interest in photography. That’s his life, he never needs to report in for work again. He has no need to book his holiday allowance or to phone in sick. His life is spent ‘doing photography’.
If that mere thought doesn’t make you want to sell your business, then I don’t think that many things will.
But there are thousands of reasons to sell your business. Hopefully, there are actually millions of reasons to sell your business. You really just have to think and calculate a few factors before you sell. There is a very helpful infographic from BCMS to help you with your decision.
How much would you need to continue to live your life as you want? How many holidays do you want to go on each year? Where would you like to buy a house and maybe even, how many houses would you like to buy?
Selling the business is not the hardest thing you will have to face. That comes in the shape of the decision. Working out all of the facts and the figures to ensure that you are making the right choice for your long-term future is!