The Psychology of Selling Your Business – Are You Sure You’re Ready?

Most likely, selling your business is one of the biggest decisions of your life.  Unless you own a business, it is impossible to understand just how all-encompassing of a process it can be.  With that stated, it is important for business owners to step back and seriously reflect on whether or not they are truly ready to sell.  The psychological aspects of selling are not trivial.  Various aspects must be taken into consideration before initiating the process to sell beforehand to avoid all kinds of issues. 

There are many reasons why it is vital to step back and think about whether or not you are really ready to sell your business.  Far too many business owners believe they are ready to sell, only to discover (much too late) that an executed sale may not be optimal. 

Selling When There is No Other Choice 

Selling a business because there is no other choice, such as situations concerning failing health, personal issues or problems with a business partner, isn’t a true choice at all.  In this situation, the psychology of selling is essentially irrelevant, as you have one option, namely, to sell.

The Case of Burnout 

In other cases, owners eventually hit a brick wall and have no choice but to consider selling before the value is diminished.  As burnout sets in, owners may feel that the time is right to “hang up their hat” and put their business up for sale.  However, as the process evolves, even those experiencing some level of burnout can discover that they are not emotionally or psychologically ready to sell.  In many cases, people make this realization when it is too late.  

Take the Time for Self-Reflection 

Quite often, a company becomes interwoven into a business owner’s sense of self, sense of place in the world and even, to an extent, sense of self-worth and identity. When business owners are unaware of this fact, it can be something of a shock to their system to begin the sales process.  Many people simply are unaware of the strong hold that their business has on them. 

Owners need to invest some time in self-reflection and ask four key questions: Do I really want to sell?  If the answer is yes, then why do I want to sell?  Will I regret selling once my business is sold?  What will I do after I have sold my business?  Answering these questions involves far more than evaluating your business.  They also involve diving into emotional issues that could be central to your future.

Are You Really Ready to Sell? 

One of the best ways of determining whether you are ready to sell, and preparing your business for that potential sale, is to work with an experienced Business Broker or M&A Advisor.  Business Brokers are experts at helping business owners deal with every aspect of the process of selling a business.  They can act as experienced guides that can use that experience and expertise to help you determine if you are truly ready to sell. 

If it turns out that you are indeed ready to sell, a brokerage professional can help you prepare so that you can achieve the best price possible once your business hits the market. Call one of our advisors for a complementary consultation. 

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Matt Coletta, CBB, CBI, is a Certified Business Broker and a Certified Business Intermediary with over 25 years of experience in successfully representing Business Sellers and Buyers in various industries. Matt is a Los Angeles Business Broker and represents Business Owners and Businesses for Sale throughout Southern California including: Los Angeles County, Orange County, Ventura County, West Los Angeles, City of Industry, Downtown Los Angele, Gardena, Whittier, San Gabriel, Upland, South Bay, Torrance, Newport Beach, Irvine, Brea, Anaheim, Long Beach, San Fernando Valley, Woodland Hills, Chatsworth, Sherman Oaks, North Hollywood, Northridge, Van Nuys, Burbank, Glendale, Pasadena, Sun Valley, Valencia, Santa Clarita, Palmdale, Ventura, Camarillo, Oxnard, Thousand Oaks, Simi Valley and other cities in the greater Southern California area.