Business 23 January 2017
Running a startup is a lot of fun. Creating, problem solving, and adding value to the marketplace is a special feeling. Most likely, you became an entrepreneur because you love what you do. There are also a lot of financial perks to running your own business too.
But when is a good time to call it quits and hand over the business to someone else? That is a complicated question with even more complex answers. I’ll try to simplify it for you a bit in this article by offering you some cues that will help you identify the best time to sell your business.
If you are running a startup, one of the things you may have experienced is a lack of cash-flow; business and personal. It’s cool in the beginning because the excitement of growing a company outweighs the challenges. However, at some point, it’s time to cash in your chips.
Selling your business to increase your personal wealth or to invest those assets in other ventures is a good reason to sell the business.
Your Company is All Grown Up
Like a child that no longer needs you to walk them to the bus stop, there may be a time when your business no longer needs you to hold it’s hand. Instead, the business may need to “hang out with people it’s own age”.
Ok, enough parenting analogies. You may be a very skilled CEO but there may be people that have the resources and experience to take your business to the next level.
Sometimes your business will grow past your skill set. Many entrepreneurs have a passion for starting up a business, getting it running, creating a culture and a staff, and once it grows past that start-up, stage they sell it. This may be a hard truth for some founders or business owners but at a certain point you are no longer an asset to your company.
According to Inc.com, the $5 million or $10 million in annual revenue threshold (depending on business model) is when businesses begin to look at different models and starts to require various leaders in roles that you may not be able to fulfill. Sometimes, having the humility and foresight as a business owner to know when to take a step down is the best decision for your business.
When the stress of running your own business is simply getting too much for you, it might be time to look at selling your business. Running a business is hard, and at a certain point, many business owners get so stressed, anxiety-filled or depressed that they don’t enjoy running their business anymore.
This happens outside of business as well. Think about having a garage band that suddenly becomes famous. Many musicians and other artists find that they were happier when they made music that they loved instead of for record labels. Kurt Cobain began to recluse himself backstage instead of talking to fans when his band Nirvana became famous.
No one enjoys feeling trapped in a role, discouraged about your daily work, or finding it hard to get out of bed in the morning. While there are many other financial and business-related reasons to sell your business for its benefit, this is one reason to sell that is strictly for your health.
The Price Is Right
So, sometimes your health as a business owner may be suffering, sometimes your business may have outgrown your skill set, and sometimes you’ll be lucky enough to recognize that its time to get out while you can…and sometimes, its none of those things. If you have been running a growing start-up business and it is showing all the signs of success then you might just receive a lucrative offer to buy your company.
Facebook is an excellent example of this. Originally a mall social media site, the corporation is now something of a new media giant and has bought out smaller, growing companies like Oculus Rift (virtual reality) in recent years.
If the market is there for your business and an offer presents itself it is always a good idea to at least consider it. Of course, this takes a certain degree of humility, but the experience will definitely help you in your future entrepreneurial endeavors…and the money won’t hurt either.
If your business continues to grow without issue, you probably have the field vision to understand your role as a business owner. Hopefully, you also have that same vision as you keep track of your competitors and the market your business occupies. Similar to playing the stock market, if there is a trend on the horizon or business that could make your business fall apart, it may be time to get out while you’re still ahead.
This is one of the more basic principles discussed in this article, but so often business owners get so caught up in their own affairs that they forget to keep track of market trends, and unfortunately, in a situation like this you may have a very small window to take action.
Today, retail businesses are currently this issues by-en-large, according to business.com, but the majority of new technology businesses can definitely relate. Gilt, an online clothing retailer, was in this exact situation, and as founder and entrepreneur, Kevin Ryan, told Forbes, “If your company is not getting the traction it needs to be really successful, the faster you can move on, the better for everyone involved.”
Go back and think about why you started the business. Was it to provide income for yourself, a means to send your kids to college, an expression of your creativity, or maybe it was just a fun thing to do?
Take a look at your business currently, has it done what you set out for it to do? If so, it may be time to move on. Many people have initial goals for starting a business and as time goes on, those goals change. More times than not, goals get bigger.
But sometimes you should be happy with the initial goals you set when you set the goal. Perhaps your exit strategy was to sell the business for $500,000. But as your startup has grown, your vision of 500k grew $5 million. Maybe the $5 million isn’t worth the stress, risk, and other things that come with holding on to the business for longer.
Holding on to the business too long can cause the other things that we mentioned in this article. Overstaying your welcome will make it hard to be happy. Your companies valuation is always guaranteed to increase. Holding out for more money can sometimes harm you if get too greedy.
Of course, this isn’t an exhaustive list by any means, but a list of reasons you may consider selling your business that many business owners often struggle with. If you’re yearning for new business ventures, or trying to spend more time with your family and children, but don’t have the time, I think we could all agree those would be valid reasons. It is important to understand whom you’re selling to. Assuming you want your business to succeed after you sell it, do your research into the company, look at their past acquisitions and track record and discuss their future plans.
This article was first published on StartUp Mindset.
3 Min Read
With a lack of certainty surrounding the future, being and feeling healthy may help bring the security that you need during these unpredictable times.
When it comes to your health, there is a direct relationship between nutrition and physical activity that play an enormous part in physical, mental, and social well-being. As COVID-19 continues to impact almost every aspect of our lives, the uncertainty of the future may seem looming. Sometimes improvisation is necessary, and understanding how to stay healthy and fit can significantly help you manage your well-being during these times.
Tip 1: Communicate with your current wellness providers and set a plan
Gyms, group fitness studios, trainers, and professionals can help you to lay out a plan that will either keep you on track through all of the changes and restrictions or help you to get back on the ball so that all of your health objectives are met.
Most facilities and providers are setting plans to provide for their clients and customers to accommodate the unpredictable future. The key to remaining consistent is to have solid plans in place. This means setting a plan A, plan B, and perhaps even a plan C. An enormous amount is on the table for this coming fall and winter; if your gym closes again, what is your plan? If outdoor exercising is not an option due to the weather, what is your plan? Leaving things to chance will significantly increase your chances of falling off of your regimen and will make consistency a big problem.
The key to remaining consistent is to have solid plans in place. This means setting a plan A, plan B, and perhaps even a plan C.
Tip 2: Stay active for both mental and physical health benefits
The rise of stress and anxiety as a result of the uncertainty around COVID-19 has affected everyone in some way. Staying active by exercising helps alleviate stress by releasing chemicals like serotonin and endorphins in your brain. In turn, these released chemicals can help improve your mood and even reduce risk of depression and cognitive decline. Additionally, physical activity can help boost your immune system and provide long term health benefits.
With the new work-from-home norm, it can be easy to bypass how much time you are spending sedentary. Be aware of your sitting time and balance it with activity. Struggling to find ways to stay active? Start simple with activities like going for a walk outside, doing a few reps in exchange for extra Netflix time, or even setting an alarm to move during your workday.
Tip 3: Start slow and strong
If you, like many others during the pandemic shift, have taken some time off of your normal fitness routine, don't push yourself to dive in head first, as this may lead to burnout, injury, and soreness. Plan to start at 50 percent of the volume and intensity of prior workouts when you return to the gym. Inactivity eats away at muscle mass, so rather than focusing on cardio, head to the weights or resistance bands and work on rebuilding your strength.
Be aware of your sitting time and balance it with activity.
Tip 4: If your gym is open, prepare to sanitize
In a study published earlier this year, researchers found drug-resistant bacteria, the flu virus, and other pathogens on about 25 percent of the surfaces they tested in multiple athletic training facilities. Even with heightened gym cleaning procedures in place for many facilities, if you are returning to the gym, ensuring that you disinfect any surfaces before and after using them is key.
When spraying disinfectant, wait a few minutes to kill the germs before wiping down the equipment. Also, don't forget to wash your hands frequently. In an enclosed space where many people are breathing heavier than usual, this can allow for a possible increase in virus droplets, so make sure to wear a mask and practice social distancing. Staying in the know and preparing for new gym policies will make it easy to return to these types of facilities as protocols and mutual respect can be agreed upon.
Tip 5: Have a good routine that extends outside of just your fitness
From work to working out, many routines have faltered during the COVID pandemic. If getting back into the routine seems daunting, investing in a new exercise machine, trainer, or small gadget can help to motivate you. Whether it's a larger investment such as a Peloton, a smaller device such as a Fitbit, or simply a great trainer, something new and fresh is always a great stimulus and motivator.
Make sure that when you do wake up well-rested, you are getting out of your pajamas and starting your day with a morning routine.
Just because you are working from home with a computer available 24/7 doesn't mean you have to sacrifice your entire day to work. Setting work hours, just as you would in the office, can help you to stay focused and productive.
A good night's sleep is also integral to obtaining and maintaining a healthy and effective routine. Adults need seven or more hours of sleep per night for their best health and wellbeing, so prioritizing your sleep schedule can drastically improve your day and is an important factor to staying healthy. Make sure that when you do wake up well-rested, you are getting out of your pajamas and starting your day with a morning routine. This can help the rest of your day feel normal while the uncertainty of working from home continues.
Tip 6: Focus on food and nutrition
In addition to having a well-rounded daily routine, eating at scheduled times throughout the day can help decrease poor food choices and unhealthy cravings. Understanding the nutrients that your body needs to stay healthy can help you stay more alert, but they do vary from person to person. If you are unsure of your suggested nutritional intake, check out a nutrition calculator.
If you are someone that prefers smaller meals and more snacks throughout the day, make sure you have plenty of healthy options, like fruits, vegetables and lean proteins available (an apple a day keeps the hospital away). While you may spend most of your time from home, meal prepping and planning can make your day flow easier without having to take a break to make an entire meal in the middle of your work day. Most importantly, stay hydrated by drinking plenty of water.
Tip 7: Don't forget about your mental health
While focusing on daily habits and routines to improve your physical health is important, it is also a great time to turn inward and check in with yourself. Perhaps your anxiety has increased and it's impacting your work or day-to-day life. Determining the cause and taking proactive steps toward mitigating these occurrences are important.
For example, with the increase in handwashing, this can also be a great time to practice mini meditation sessions by focusing on taking deep breaths. This can reduce anxiety and even lower your blood pressure. Keeping a journal and writing out your daily thoughts or worries can also help manage stress during unpredictable times, too.
While the future of COVI9-19 and our lives may be unpredictable, you can manage your personal uncertainties by focusing on improving the lifestyle factors you can control—from staying active to having a routine and focusing on your mental health—to make sure that you emerge from this pandemic as your same old self or maybe even better.