It’s been x years since you decided to become an Amazon FBA seller. You’ve come up with an incredible new product, successfully brought it to production, and launched it to the public. You’ve gone through the ups and downs that go into founding a consumer product – from supply chain to customer demand to navigating Amazon’s interface. You think you’re ready to pass your business on, but how do you know if now is the right time to exit this journey? In this guide, we’ll walk you through when the right time to sell is, what you need to prepare, and what options you have when it comes to selling your business.
Is now a good time to sell your company?
While you may never know when to sell your business, asking yourself these few questions can be helpful in steering you in the right direction:
- Is managing my business getting too much for me?
- Have I lost excitement for my business?
- Is working on something else more exciting?
- Do I want to raise more capital for my business?
- How does my industry’s future look?
- Someone has approached me about my business – what now?
1. Is managing my business getting too much for me?
It isn’t easy to run your own business. From employees to production to keeping up with industry trends, it’s hard to run the show on your own. Sure, in the beginning it may have been simple to keep up with your production schedule and easily finance all of your business elements, but as you grow your responsibilities increase as do your potential roadblocks. When selling to a larger company or a strategic buyer / aggregator, these businesses have the resources that you might not have, and can help bring your business to new heights. They’ll have experts with skills across the board from supply chain to brand strategy, and enough resources to provide your business that you may not have.
2. Have I lost excitement for my business?
While your business may have started out as a passion project, it’s possible it soon turned into a burden. Many times, sellers, creators, and entrepreneurs want to take their personal passion and make that their primary income. However, over time as your passion becomes your job, the excitement and vigor you have towards it may decline, making it more difficult to continue supporting the business. That’s perfectly fine, and completely normal. Being an Amazon seller can be an awesome phase of your life, but it doesn’t have to be the only phase.
3. Is working on something else more exciting?
Is there something else that is more exciting? Maybe you want to start a new business, head back to a traditional workforce, or take a step back and enjoy some time for yourself. If something else is grabbing your attention, it may be time to evaluate where you stand with your current business. Don’t forget, your idea is still an incredible one, despite the desire to sell and chances are someone else out there is dying to get their hands on your brand. If you find yourself feeling down on your business month over month and are dreading work the next morning, considering to sell your business might allow you to take the time to step back, recharge, and take your hard earned cash to your next project.
4. Do I want to have more capital for my business? Do I need more financial security?
You may not be totally down in the dumps about your brand. Maybe you just need some more funds to keep you afloat. This is a common problem across sellers that we like to say, isn’t actually an issue. If you have an amazing product, an amazing strategy, and an amazing business idea, share that with the buying world, and insist to be kept on. Having the heart and soul of the brand continuing to work on the product brings innumerable benefits to any brand. As the founder, you know the brand inside out and better than any buyer would. Having this financial security provides you with a cushion to continue investing in your business. By selling to a potential buyer and having them keep you on board, not only are they getting a killer product and you’re getting a hefty check in hand, you’re also able to keep growing your brand with someone else’s capital!
5. How does my industry’s future look?
Is it bleak? Is it booming? Is it the next big thing that no one knows about yet? Whether or not your business is the next Tesla, or the next Scrub Daddy, figuring out the future of your industry is imperative to seeing how you should make your next move. Spend time digging into how your industry looks and start to make projections on what to expect over the next couple of years. If it looks like it’s heading towards a downward trend, or you feel like it’ll be too much for you to handle on your own, then considering to sell your business to someone with more resources is a good idea to explore.
6. Someone has approached you about your business
You may not think it’s time to sell your business, but there very well could be industry experts out there ready to buy your business. These insiders are in tune with the trends, the market, and competitors, and by them inquiring about your brand may be a hint that this is the perfect time to sell. Listen to what they have to say, and see if there’s anything that sparks your interest. You can pick their brain about who they are, what kind of growth they expect for your business, and why they’re interested in buying your business in the first place. It never hurts to have a conversation and should you decide that you aren’t in fact ready to sell, that’s OK. You can reach out when the time is right to sell your business.
As frustrating as it may be, there is no one formula for when to sell your business – it goes on a case by case basis. That being said, by taking a 360-look at your brand, and your personal feelings towards your growth, you’ll end up making the right decision for you.
If you need a little extra help in figuring out if your business is ready to be bought or not, feel free to reach out to our business development team at growth@unybrands.com, and our team of experts will give you a free evaluation of your business, and help answer any questions you may have tailored specifically for you.
