Alternatives to selling a business

Before you make a final decision to sell your business, you should consider some of the alternatives. If you are selling the business because of certain problems, you may be able to solve the problem rather than resort to selling the business. For example, if you are contemplating selling because of stress or burn out, you could delegate some of your workload or take on a partner, although taking on a partner may be a short term solution but a long term problem. Another solution is to sell part of your business. Or you could cut back on the number of clients, reduce the number of products or services you offer, or reduce the size of the geographic area you service. Sometimes business owners take on too many obligations outside of the business, such as service in the community and association leadership, which can become overwhelming. Examine if some of these activities could be curtailed.

If the problem is financial, you usually have two options; get more or need less. Selling a part of your business or bringing in a partner can reduce workload and generate extra capital. It may be possible to sell unwanted assets to raise cash or you could consider selling some items of equipment and leasing them back. Reducing the amount of money you require generally means improving the efficiency of your business or refinancing some of your loans to reduce the amount of the payments. Regardless of the problem, you should carefully explore all options before selling the business.