Building a successful business from the ground up is a life goal that many entrepreneurs share. Their idea of success isn’t necessarily tied to making huge profits or high-value exits.
Instead, they enjoy the journey of putting their work and time into a project they’re proud to call their own.
However, the truth is that being a business leader takes its toll. And considering the past couple of years we’ve had, it’s easy to understand why someone would like to take a step back and enjoy the fruits of their labor.
So, whether your plan always included an exit strategy based on selling your company or you simply feel like it’s time to move on to something new, these are the top reasons why 2022 might be the year to sell your business.
Reason #1: The Workforce Shortage
One of the biggest problems entrepreneurs face right now is a vast shortage of workers.
According to currently available data from June 2022, there are approximately 5.5 million more job vacancies than people to fill them in the US alone.
And this piece of information essentially means that most small businesses facing growth will find themselves looking for new hires in the coming period.
Now, for some, this may not pose a problem. After all, many organizations operate based on remote or hybrid work models.
And even more of them are prepared to outsource operations to professionals from abroad. However, those whose processes are strictly limited to a single location might find themselves at a stalemate.
In these cases, selling might be the best option for moving forward. Instead of taking on unnecessary risk and endangering a stellar service, product, and customer experience, business owners who wish to secure their brand’s positive image may choose to give up control to someone who can take the company to the next level.
Reason #2: You’re Ready to Let Go
Sometimes, the best time to sell your business is when you realize you’re ready to let go.
Perhaps you’ve put years into growing a brand and are ready to finally take things slow. Or, you might have exhausted your resource of inspiration and need a new challenge.
It might even be possible that your priorities have simply changed and that you’d prefer to take the backseat for a while, letting someone else do all the hard work that inevitably comes with being an entrepreneur.
Whichever your reason for letting go of your business, rest assured that selling in 2022 might just free up your time (and precious mental space) for the next step in your entrepreneurial career.
Reason #3: You’ve Secured an Advantage
Finally, if you’re toying around with the idea of selling your brand, consider the fact that the past couple of years ushered in some significant changes in the business world. And, if you’ve managed to secure an advantage, this might just be the perfect time to sell.
For example, McKinsey’s consumer behavior analysis for 2022 shows that some product categories, like sporting apparel, cosmetics, software, and electronics saw significant growth.
In fact, people increased their spending by 20% or more on these items in March 2022 compared to the previous year. Moreover, the data shows that ecommerce shopping is still on the rise, despite brick-and-mortar stores being reopened.
So, what does this mean for entrepreneurs ready to move on to new positions? It’s quite simple. It indicates that those who have secured an advantage (especially in the ecommerce industry) should consider valuing and selling their business.
Of course, considering inflation and market volatility, you have to prepare for the fact that your particular business may not sell for a healthy profit in 2022.
If your analysis reveals that you could be facing a loss by selling your business, you’ll be up against a big decision:
Do you implement your preferred exit strategy and cut your losses now? Or do you shift gears and find a way to turn the situation in your favor?
The choice is up to you. What matters is that the decisions you make are informed by good data and that you’re making difficult choices with a clear head.
Despite the economy being at a low in 2022, some business owners might see exceptional returns from selling their companies right now.
So, if you’ve been considering the possibility of making an exit this year, don’t hesitate to (at least) put out some feelers.
Do your best to gather all the information you might need, value your business, and see what offers you get. Who knows, you might just find that selling turns out to be more profitable than running the brand by yourself.
Or, you might find that it’s not what you were looking for, after all, giving you some much-needed inspiration to keep pushing until you can truly benefit from all the hard work you’ve done so far.
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