Why I am afraid when sell my business?
There are several reasons why people may be afraid to sell. It can be a scary time and leads some to thinking as to why they may be afraid to sell my business. Its not an easy time for some and health may play a big factor.
Its why the sale of a business or any significant asset needs a plan. The sale of your business can be one of your biggest asset and you need the time to make sure its done right.
Here are top reasons why people are afraid to sell their businss:
1. Emotional attachment: Business owner often pour their hearts and souls into their businesses, and as a result, develop strong emotional attachments to them. Selling the business can feel like giving up something that is a part of them, which can be difficult to let go of. Will a new owner be as passionate as me? What will I do with my life ? Will I be somebody after the sale ? All important questions and rational.
2. Fear of the unknown: Selling a business can be a complex and unfamiliar process, and many business owner may feel uncertain about what the future holds after the sale. They may also worry about what they will do next, especially if they have spent many years building their business. Hobbys and dealing with romantic partners can be dauting?
3. Financial concerns: Selling a business may be a significant source of income for an business owner . They may worry about the financial implications of the sale. They may also be concerned about the tax implications of the sale and how it will affect their retirement plans. Talk to an accountant such as us Gartly Advisory about how this will play out . You may wish to engage a financial planner to look at how you invest the proceeds
4. Loss of control: Once a business is sold, the business owner may no longer have control over the direction of the company or its operations. This loss of control can be unsettling for some business owners especially if sold to family . This is where a family board and decision making takes place well before a sale or transfer of ownership.
5. Concerns about employees: Many business owner view their employees as family and worry about their welfare after the sale. They may also worry about the impact that the sale will have on the company culture and the relationships that they have built with their employees.
But I am keen to sell but why can I get a suitable buyer?
There can be several reasons why you may be facing difficulties in selling your business. Some possible factors could include:
1. Poor Financial Performance: If your business is not generating enough revenue or profits, potential buyers may be less interested in buying it. The key factor may be a lack of Market Demand. If your business operates in a market that is currently experiencing a downturn, it may be difficult to find buyers. Similarly if your business has limited growth potential, potential buyers may not see the value in investing in it.
2. Overvaluation: If you have overpriced your business, it may be difficult to attract potential buyers. Get a proper valuation and discuss your options with those who have industry knowledge.Dont assume your figure is what people will pay!
3. Legal or Regulatory Issues: If your business has any legal or regulatory issues, such as pending lawsuits, it may be difficult to sell until these issues are resolved.
4. Poor Reputation: If your business has a poor reputation in the industry or community, it may be challenging to find buyers who are willing to take on that reputation.
It’s important to identify and address any potential issues that may be hindering your ability to sell your business.
Statistics of business sales ?
According to a report by the Australian Bureau of Statistics (ABS) on Business Characteristics in 2019-20, there were a total of 2.4 million actively trading businesses in Australia as of June 2020.
Of these businesses, approximately 70,000 businesses were newly registered during the 2019-20 financial year. This can suggest that a significant number of businesses are bought and sold in Australia each year.
It is estimated number of businesses sold in Australia each year can range from 10,000 to 30,000. This is depending on the size of the businesses and the industry in which they operate. However, these numbers are estimates and may vary depending on the source of the data and the methodology used to calculate them.
So what is the easiest business to sell?
The easiest business to sell will depend on various factors. These include such as the current market conditions, the industry in which the business operates, and the size and profitability of the business. However, businesses that are typically easier to sell tend to have the following characteristics:
1. Established Business Model: Businesses that have a proven track record of success and a well-established business model are often easier to sell . This is because potential buyers can see the value in investing in a business that has a history of profitability.
2. Strong Financials: Businesses with strong financials, such as high revenue and profits, are generally easier to sell as they represent a lower risk for potential buyers.
3. Growing Industry: Businesses operating in growing industries or sectors are often more attractive to potential buyers . This is because they offer greater potential for future growth.
4. Positive Reputation: Businesses with a positive reputation in the industry or community are often easier to sell as they are viewed as more valuable and trustworthy.
5. Transferable Skills: Businesses that require transferable skills, such as professional services firms, are often easier to sell as the buyer can continue to operate the business with their own expertise.
Ultimately, the ease of selling a business will depend on a range of factors . We can help you work through this process and put a exit plan in place to ensure your business sale journey is a smooth successful one.