Is it time to get out?
Have you put dollar after dollar into a new business? Fought day and night to keep a struggling business alive? If so, you would know how hard it is to decide when enough is enough.
Most people find it hard to pull the plug on anything they have put their heart and soul into.
If your business is declining, if you are losing interest in keeping it alive or if you are just getting older and want to retire while your business is at its most valuable, perhaps it is time to consider getting out.
Ask yourself these questions:
- Are you dedicated to making your business work or are you simply scared of change? If you are going to stay, make sure it is for the right reasons.
- Are you learning or improving your skills? Even if the specific project is not a huge success, the career experience could be worth it.
- What are the costs of continuing? It may not be worth devoting all of your time and energy into when there is something else that you could be focusing on.
- Is this situation taking a toll on or your family and friends? You may be willing to forge ahead but at what price to others and your own emotional and physical well-being?
- What direction has your business generally been going? If things are stagnant — and they have been stagnant for a long time — is this really what you want for yourself? Be brave enough to be honest.
- Do you have a truly reasonable chance at making it work? If not, maybe it is time to make the tough choice to get out.
- Developing a good succession plan or exit strategy will enable a smooth transition, allow you maximum profitability and can help you outline what will happen and who will take over your business when you leave.
Alternatively, you may consider:
Selling up - In order to sell your business officially, you will need to prepare a sales agreement. This is the key document needed when buying the assets of a business. It is important to make sure the agreement is accurate and contains all the terms of the purchase.
Liquidation - Keep in mind that if you liquidate, any proceeds from the assets must be used to repay creditors. The remainder gets divided among the owners - if there are other owners, you want to make sure they get their due.
Acquisition - Find another business that wants to buy yours and sell.
Whatever your exit strategy, it is a good idea to seek professional help before making your final decision and for assistance throughout this difficult time.
