By Natalie Oliverio | Website Properties
Buyers will often ask, “If a business is successful and profitable, why is the owner selling?” Well, there are multiple reasons why entrepreneurs decide to start their own online businesses or purchase existing ones. Likewise, there are likely just as many reasons why they consider selling their online businesses at some point.
In our numerous years of assisting business owners sell their online businesses, we’ve encountered several common reasons. They include:
The Opportunity to Pursue New Ventures
Entrepreneurs often come across new ideas. At some point, many decide to change paths. As people grow and change over the years, so do their interests.
Often, following those new ideas and interests will lead them to develop new ventures, even as they continue to operate their current business. However, the development of their new business frequently demands more of their time. And owners find themselves feeling the crunch.
It is at this point that many owners of online businesses decide it is time to sell their website. Many of these owners want to continue to pursue their new opportunities and do not have the time to devote to multiple businesses.
Sometimes, a business owner is simply burnt out. Years in the same market can leave a business owner tired and bored. This state quickly turns to stagnation—or worse, a decline in the business’s financial health. It’s much better to sell and pass the torch to a new owner. Someone with fresh insight and energy can enhance and grow the business before the negative effect of waning passion weighs too great on the business.
As business owners reach their golden years, many consider selling their business to retire. They want to slow down and enjoy more leisure time or time with family and friends.
The Desire to Cash Out
Sometimes owners simply want to cash out to reap the rewards of their efforts. Maybe it’s for a long overdue vacation. Perhaps it’s for a home remodel or new car. A large lump sum pay-out after closing on the sale of the business offers financial freedom. Once slaves to their business, former owners can make that big-ticket purchase or simply enjoy a lifestyle change.
Changes in marital status can be amicable or downright nasty. In either case, a divorce often involves splitting up the couple’s assets. This can include an e-commerce business.
One of the most unfortunate circumstances we’ve come across is when a business owner needs to sell their company due to medical or health issues. Whether an illness affects the owner or a close family member, operating an online business can become secondary. If a business owner finds himself or herself unable to effectively run the business, selling becomes the most viable option.
Whatever the reason the owner has for selling, for buyers it’s an opportunity. They get the chance to acquire an established online business with an existing foundation. Often all the business needs is a fresh perspective, positive energy, and some fresh marketing ideas. Therefore, it’s a chance, too, for the business itself to springboard to its next level of growth.