Should You Sell Your Business or Should You Stick It Out?
Every entrepreneur remembers the uphill struggle of getting their first business off the ground. They remember the meticulous detail with which they composed their business plan. They remember the sacrifices they made of their time and effort and the social engagements they turned down to make their dream a reality. They remember the passion with which they argued for and won funding from banks, business lenders and investors. They remember the vigor with which they threw themselves into their operation.
But this level of passion and determination simply isn’t sustainable, and it’s completely natural for even the most ardent entrepreneur to feel as though they’ve hit a wall. Everyone who builds their own business up from nothing finds themselves at a crossroads at one point or another. Their energy, passion and enthusiasm begin to wan and they face a difficult choice. Do they get a business valuation and sell up, or do they double down and try to weather this period of self doubt. There’s no right or wrong answer and what you decide to do will depend very much on your personal circumstances as well as those of your business. Nonetheless, there are some compelling arguments on either side. Since the grass tends to be greener on the other side, here are some questions you should ask yourself before making this momentous decision…
Will you have more or fewer opportunities for growth?
Many entrepreneurs start their own business out of frustration at the lack of opportunities that their old job presented. When this happens they can quickly find a different colored glass ceiling placed over their heads when they start their own business. If, despite your best efforts and investing heavily in marketing and capital, your business doesn’t show the kind of growth you’d expect you may find yourself equally frustrated. Nonetheless, your business experience could potentially make you a more valuable and desirable commodity in the job market. Thus, you may return to the world of salaried work with more opportunities for growth than you had before starting your business.
Will you be more or less worried about money?
Money makes the world go round, and when you own your own business, you may have much more money coming in than when you worked for an employer. The trouble is that your business’ money is not technically yours. Many entrepreneurs pay themselves a fairly meager salary to ensure that their business maintains a healthy cash flow. Even when turning a consistent profit, you may still resist the urge to give yourself a pay rise tro ensure that your business can weather the leaner months. If you were to go back to salaried work, your money would be your own again, but only you know whether it’s a better option than simply paying yourself more.
Will you be happier?
This is the most important question, and it’s a question that only you can answer. You may well return to the job market with far more value and prospects than you had before starting your business, but you may well miss the sense of purpose and self determination that you felt at the helm of your own business.