Every entrepreneur may start to think about selling his business at some point. Entrepreneurs are willing to take on more risks in the first stages of a business because the company has not created value yet. As the company grows, the entrepreneurs become more conservative. To make the decision you need to travel to the future and imagine your business in 5 or 10 years. Selling your business can bring numerous advantages for you. You can keep the profits, reduce the losses, and open your time to invest in new businesses. There are many factors to consider before selling your business. A few of them are mentioned here.
Political atmosphere: Politics is one of the macro factors that impact business profitability. For example, civil unrest in other countries can impact your business depending on the industry sector. You need to ask yourself many questions. Who is running the political office? Are they going to change import and export laws? Are they going to change tariff laws? Do they have a friendly approach towards other countries? Do they have a strict immigration policy? Are they more interested in renewable energies and technologies? Is a recession being likely? As a businessman, you should constantly check the news and be on top of the political news.
Future trends: Where your industry is heading towards? Is your business ready for a big leap? As we know the future is moving towards digital currencies, artificial intelligence, electronic vehicles, space exploration, nanobots, and many more advanced technologies. Is your business ready to survive a technological disruption in your industry? Is your business correlated to one of the future technologies?
Timing: Timing is crucial when it comes to business decision makings. For example, during a pandemic that requires social distancing practices, telecommunication industries and online sales can profit. On the other hand, hotels, restaurants, and entertainment industries will suffer. If the market is on your side and your industry is flourishing it might be a good idea to liquidity your business at some point.