No more Fun.

Of course owning a business is hard work, but it should also include an element of enjoyment. The owner who drags himself or herself through every day, with a sense of dread or boredom, should consider moving on to a fresh challenge elsewhere.

Just Plain Tired.

Simply put, many business owners burn out from the demands placed on them to keep their companies operating day after day, year after year. The schedule is not for everyone; in fact, statistics show that it's hardly for anyone, long-term.

The important point here is for business owners to recognize the signs and take action before burnout begins to hinder the growth of the business. Many of today's independent business owners feel they've worked hard, made their money and sense that now is a good time to cash-out and move on.

Waiting Too Long to Sell.

What happens if an owner waits too long to sell a business and the survival of that business is less than six months? Georgia Business Group has been able to salvage equity for owners whose businesses had actually deteriorated to a point where the owner was ready to walk away and receive nothing for their years of hard work. Some burnt-out business owners have even considered abandoning their business, knowing they would not receive money from the business. The owners could face a financial burden due to a lease they had personally guaranteed.

The Best Price Comes from Selling while Up.

Other than burnout and its consequences, there are other factors that can lead to the forced sale of a business. Some examples include compelling personal problems (a divorce or death in the family, poor health), shortage of capital or outright failure of the business. Instead of waiting for unfavorable conditions, potential sellers should keep a wary eye out for that all-important right time for putting their business on the market. When might that time be?

The Small Business Administration (SBA), in researching selling trends, reports that three to five years is a long enough stretch for many of today's business owners. One in every three plans to sell; many of them right from the outset. The business they've bought is not a legacy for their children - it's a short-term investment of their time as well as their money. The ability to present a healthy operation, with an owner in the position to role model its success, is a major advantage in the completion of a successful business sale. One of the surest ways to maximize the value of a business is not waiting too long to sell.

Steve is President of Georgia Business Group. For assistance with buying and selling businesses, call Steve at (770) 516-9500. You can also email Steve at steve@georgiabusinessgroup.com.

Small Business Report
 Time to Sell May Be Now!

by Steve Monahan

The first question one might ask, given the relatively healthy financial climate, is WHY?

Selling when times are good?

The answer, for many sellers, can be a resounding YES!

The Buyers are Out There.

Executives and middle managers out of work and determined not to be downsized by big business again are eyeing the advantages of being in business for themselves. For some time now, the percentage of those corporate executives who leave jobs in order to become independent business owners has steadily grown. It isn't just the money they are dreaming of, it's the desire for more control over their lives.

How to find these Buyers?

The business broker is the professional to whom sellers turn when looking for serious, qualified buyers. The business broker not only helps match the right buyer with the right business, but also educates the buyer in the buy-sell process, alleviating concerns and keeping the transaction in a steady forward motion. With plenty of buyers to choose from in today's market, it's more important than ever to identify the time-wasters and those who think they want to buy but really aren't ready to take the big step.

It's Better to "Cash-Out" than to "Burnout."

Burnout can come with a business that's successful as well as one that's failing to grow. The right time to sell is before the syndrome becomes a threat to the effective management of a business. What are the warning signs of burnout?

That Isolated Feeling.

The burnt-out owner has been chief cook and bottle washer for such an extended period of time that even routine acts of decision-making and action-taking seem like insurmountable tasks. These owners have been shouldering the burdens alone too long. Burnt-out owners are so close to their work that they lose perspective. Prioritizing becomes a major daily challenge, and problem-solving sometimes goes no further than the application of business band-aids that cost money in the long run rather than increase profits.