As an experienced accountant and business advisor, I know that deciding to sell or close your business is a big deal. I’m here to help you understand what to think about if you’re considering this big step.

Why do you want to sell your business?

First off, you need to figure out why you want to make this change. Some people want to retire, some need a break, and others want to start something new. Whatever your reason, it’s important to think about what you want for your future.

Research shows that a lot of business owners—more than half, in fact—plan to retire when they sell their business. Others want to start a new business. But it’s not just about the money; taking care of your health and wellbeing along the way is really important too.

Businesses go through ups and downs because of changes in the economy. Ideally, you’d sell when things are going well, but it’s hard to predict the perfect time. Sometimes personal reasons are more important than what’s happening in the business world.

Your personal life can make you decide it’s time to sell, like feeling worn out or dealing with health issues. This might mean you have to sell sooner than you’d like or for less money, so planning ahead is key.

Transition period

Most buyers will want you to stick around after the sale to help them learn about the business and keep things running smoothly. If you’re not around long enough, they might worry and offer less money. So, be ready for a period of helping out after you sell.

Becoming an employee after being the boss can be tough. You’ll have to adjust to a new role and maybe some changes in how things are done. It’s important to communicate well with the new owner to make this transition smoother.

Instead of being an employee, you might prefer to stay involved as an advisor. This way, you can still help out without committing to a full-time job. It gives you more freedom to explore new hobbies or business ideas.

Plan for the future

Before you make any decisions, take some time to think about what’s important to you. What do you want to do after you sell your business? How will it affect your family and friends? What new things do you want to try?

It’s also important to think about the future of your business. You’ve put a lot of time and effort into building it, so you probably want to see it continue to succeed even after you’re gone. Finding a buyer who shares your vision can help make that happen.

Money is a big part of the decision too. You’ll need to figure out how much you need from the sale to live comfortably afterward. This is especially important if you’re retiring or starting a new business.

In the end, deciding to sell or close your business is a big step. But with careful planning and support from professionals like myself, you can make the transition smoothly and confidently.

Are you emotionally and financially prepared for a business exit? Take this Personal Exit Planning Health Check questionnaire to assess your readiness and identify areas for improvement.