Should You Put Up Your Business For Sale?
That is exactly what my plan was for my business [check business section for diary entries] if I was lucky enough to build it to that stage. When I spoke to my friend about my grandiose plans for the future he suggested that I would have to think about it very carefully though. Here’s why:
Cash Cow
If you’ve been successful in building a brilliant business, it will no doubt have become a cash cow for you, producing a nice regular income. Selling the business is a lot like refurbishing a house and selling it. You generate a nice wad of cash from the increased value, but that’s it. Those serious about wealth accumulation would much rather have the regular income rather than a wad of cash and the loss of their cash cow. Using the Stephen Covey analogy, you’ll be getting rid of the Golden goose that lays the eggs!
Emotion
After putting so much sweat and tears into building the business, would you be able to part with your creation and accept it being sold to someone else? Sure you would make sure you sold it to someone competent to push the business forward, but what if you checked in 6 months later to see things radically altered, values changed, or perhaps the business not being as profitable as it once was?
How would you deal with the void selling your business would create? Something that filled your heart and mind day and night for years; gone and no longer in your control! It may be a relief, but what would you do next. How would you fill the massive emptiness that would no doubt be present?
What would you do with the money?
If you did decide to cash in, what would you do with the money? Let’s say it made you a millionaire, a whole bunch of new issues would crop up, how would you use the money? How much would you save; Where would you invest? How would you reinvest it to generate regular income once again? How would you shelter it from the taxman?
Family
By keeping the business, you could possibly provide an income for close family members and have this help to look after them for generations. Without it, something great that was built wouldn’t benefit them at all because it will be gone!
Building A Business The Right Way
If after analyzing these questions you are still convinced to put up your business for sale, and perhaps even if not, you may want to take a look at this excellent book, particularly if you are at the beginning of your business building journey.
I’m keen to know, what are your thoughts on building a business and how would you deal with the questions posed? If you did sell how would you reinvest to increase your income and your wealth? Let me know below!
