Why are you growing your business?
Many entrepreneurs who begin their own business do so because they recognized an unfulfilled need in the marketplace, they wanted to be their own boss and reap the rewards of owning/controlling their job.
If that describes you, you likely also want to make a bit of money, at least enough to live comfortably and possibly save for retirement.
I think it’s less likely that people start businesses specifically to grow them and sell them unless they’re seeking venture capital funding, which in my opinion makes sense. In that scenario, the business owner is trying to raise capital from outside sources to rapidly grow the business toward a positive return for the investors and the business owner (from an eventual sale of the business) who put their time and effort into growing the business.
But what about solo-entrepreneurs or very small businesses -- consulting-like businesses?
Well, consulting businesses often fall into the camp mentioned earlier. These businesses are often started out of passion or an underserved need in the marketplace, or both. When these businesses are started the end game of selling the business is not always a forethought.
However, as retirement nears for such business owners selling the business could be an ideal way to exit the working world and gain the reward of the many years of service put in while building one’s consulting practice.
Such a consulting practice might be attractive to a younger consultant hungry to own his/her own business. It’s attractive because the business is established and likely has a steady client roster that could give a new consultant a nice base of clients to start with as they grow the business how they see fit.
If you’re considering selling your business or want more information on the subject, you might check out: http://www.mydefence.ca. They handle business purchases and sales, and offer some good explanations on their site about what’s involved.
Posted by: Nick Venturella
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