Find Your “Why:” 3 Strong Reasons for Selling Your Business

Knowing why you’re selling is the first step for a successful sale — so what’s your “why?”

This post was first published on my Medium blog—follow me there for the most up-to-date entries!

Selling a small business or microbusiness can be a big decision for an owner. But before you move forward with that decision, you’ll need to clearly identify one or a few main reasons why you want to sell. Finding your “why” for selling is an essential step. Your reasons for selling your business will influence every aspect of the sale, and knowing them from the outset will grant a boost of confidence to both the buyer and yourself.

A. Financial reasons for selling your business

You might want to sell whether you have favorable, unfavorable, or mediocre financial conditions. What are the motivators for each, and how will selling make your life better?

Favorable financial conditions

When market conditions are strong, there’s a high likelihood that selling your business can lead to substantial benefits that improve your quality of life.

Your motivators for selling might be:

Maximizing business value: A booming market can drive up business valuations, making it the perfect time to capitalize on your investment.
Financial security: Cashing out on your business allows you to secure your future, whether that means stepping away from work or funding other important life goals.
Diversification of investments: By selling, you can spread your investments across different assets, reducing your financial risk and increasing potential returns.

If those are your reasons for selling your business, how will selling your business make your life better?

Comfortable retirement: The proceeds from selling can support a lifestyle of relaxation and financial freedom during your retirement years.
Pursuit of new ventures: With the capital from your sale, you can explore new business ideas or other entrepreneurial pursuits without the financial strain of debt or insufficient funds.
Enhanced financial stability: Diversifying your investments allows for more financial security, reducing the stress of relying solely on one business.

Unfavorable financial conditions

Selling in less favorable financial conditions can also lead to substantial benefits. Doing so can be a proactive move to protect your future. Your motivators for selling might be:

Avoiding debt and bankruptcy: If your business is experiencing cash flow problems or is burdened by debt, selling it now can help you avoid financial ruin.
Mitigating operating losses: If the business is unprofitable and unlikely to recover, selling can prevent further loss of investment.
Economic uncertainty: In times of economic downturn, selling while your business is still profitable can help protect your assets and avoid potential future losses.
Outdated business model: If your industry or product is becoming obsolete (e.g., the shift from horse-drawn carriages to cars), selling now can save you from further losses.

Given those reasons for selling your business, how will selling your business make your life better on a day-to-day basis?

Peace of mind: Exiting before the financial situation worsens can relieve stress and prevent a potential personal financial crisis. As my friend and fellow business coach Brea Roper says, “follow the peace.”
Preservation of wealth: By selling before losses escalate, you can preserve the value of your investment and avoid long-term financial damage.
Reduced financial burden: Selling provides the opportunity to eliminate debt or financial obligations, helping you move forward to the next chapter of your life without the burden of ongoing struggles.

Mediocre business conditions

When business conditions are neither great nor poor, selling might still be the right choice if you see an opportunity for financial improvement. Here are some motivators for selling in this situation

Strategic profit maximization: Even if the business is stable, you may choose to sell to achieve better financial gains or to leverage a strong market to boost your financial position.
Diversification of assets: Selling at a stable point allows you to redirect funds into other investments or opportunities that might offer better returns or less risk.
Mergers or consolidations: If your business can merge with or be acquired by another to create a stronger entity, selling could lead to an enhanced financial situation for you.

Given those reasons for selling your business, how will this help you to live a better life? Selling now will give you

Reduced risk exposure: Diversifying your financial portfolio decreases your reliance on one source of income and can provide a safety net during market fluctuations.
Future financial freedom: By leveraging the sale for more lucrative opportunities, you can increase your financial freedom and reduce stress about future prospects.
Empowerment for new goals: Selling in a neutral or stable market might give you the capital and confidence needed to pursue new goals, whether personal or professional.

B. Personal or health reasons for selling your business

Although financial considerations are often front and center, personal reasons for selling your business can be just as impactful. These motivations, driven by changes in life circumstances, personal well-being, or new aspirations, can lead to a more balanced and fulfilling lifestyle.

Health and family considerations

What are your motivators for health or family issues?

Physical or mental health problems may limit your ability to run your business effectively. Selling can allow you to step back, prioritize recovery, and reduce the stress that can come with managing a business.

Your life will be better when you can give the time and resources needed for better health care, rest, and focus on your well-being, reducing the strain on both you and your family.

Caring for a family member

Caring for an aging parent, a sick child, or an elderly relative with no other close family can be overwhelming. Managing these responsibilities while running a business can drain your time, energy, and emotional well-being. I’ve experienced this firsthand twice, and, as the nurse in the family, I often took the lead in coordinating care, even if I wasn’t directly providing it.

Selling my business was the key to a better life, and it might be for you too. By stepping away from your business, you can free up your schedule, ease your mental load, and focus on providing the support your loved one needs. This shift allows you to spend quality time with them without the constant stress of business demands.

Life changes and transitions

Are you selling your business because you’re undergoing or anticipating a big change in your life? See if any of these reasons for selling your business resonate with you.

Major life events

Major life events — joyful or sad — can prompt you to reassess your business priorities. As I learned in nursing school, the true transition in life is not getting married or having a life partner. Rather, it’s having a child. Often, too, I’ve seen women who go back to work after having their first child but stay at home after having their second child. There’s nothing wrong with that.

Selling the business can provide you with the flexibility and freedom to adapt to new life circumstance without feeling trapped by the demands of your current business.

Different lifestyle

What about the desire for a different lifestyle? Sometimes, you may want to embrace a new phase of life that doesn’t involve the 24/7 responsibilities of owning a business.

Selling can dramatically improve your day-today life. You can finally prioritize family, personal growth, or even leisure activities that contribute to a happier and more well-founded life.

Burnout and fatigue

Running a business can be exhausting. You may find yourself with little energy for yourself. The pressure of decision-making, long hours, and constant responsibility can leave you feeling empty. Or burnout may feel nothing like fatigue. After having spent more than 40 years in some aspect of maternal-child health, I was bored. I’m a learner, but I just plain didn’t want to learn any more. I felt saturated. I felt done. It’s okay to just hang up your boots (or your high heels, or whatever).

Selling my business allowed me to avoid further burnout and reclaim my energy. A major turning point was the sudden death of my college friend, which pushed me into a funk and led to a life review. I realized that running a business and leading a team had become more of a burden than ever before. Selling gave me the freedom to set boundaries and focus on what truly mattered, like spending time with my husband, who continually brings joy and laughter into my life.

These personal reasons show that letting go of a business can lead to a more balanced and fulfilling life. Whether it’s prioritizing well-being, nurturing important relationships, or exploring new interests, selling can be a transformative step that aligns with your evolving needs and desires.

C. Other reasons for selling your business

Some reasons don’t exactly fit into one of the above categories. Here are a few other reasons you might be considering selling your business.

Changing business goals and interests

At the onset of COVID-19, my priorities shifted dramatically. In 2020, I lost my friend Linda, a nurse my age, to the virus. Meanwhile, most of my business associates were facing significant revenue drops, while I was relatively less affected. I began devoting time to help colleagues adapt to remote work, improve their websites, attract more online leads, and boost productivity — even from home in pajamas. This effort made me realize I was coaching people.

I felt a deep desire to start a new venture and wondered: how could I build a career helping solopreneurs and small business owners thrive? The pandemic, though devastating, gave me clarity. I found satisfaction in helping others become better leaders and felt energized and fulfilled. My work began to align with my new goals, and I had a renewed sense of purpose.

Selling a business can be a catalyst for exploring new paths, whether that means embarking on a fresh career or pursuing long-held passions. For some, it might mean traveling — something often postponed until health or mobility limits the opportunity. With the financial freedom from selling a business, you can create a future that’s more fulfilling and embrace experiences you’ve always wanted.

Succession planning

Perhaps your motivation is to have an heir or successor to your business. If you do not have a family member or employee ready to take over the business, selling to an outside buyer may be the best option for the business’s continuity. Similarly, you may wish to pass the torch so that the business can flourish long after you’re gone. You’ll feel better knowing that you’ve birthed this business, and now, someone else is there to “parent” it into the next stage of growth.

Regulatory and legal factors

Regulatory and legal factors might also be a motivator. I felt a little done-in by new regulations that made it more difficult and/or more costly to operate the business effectively. You, too, may feel the financial and logistical burden of staying compliant with industry regulations, and it may push you to sell. (For me, this was a huge factor.)

These reasons often overlap, as I experienced myself. Between finding an assisted living facility for a relative, pursuing more coaching clients, and dealing with increasing compliance regulations, I knew it was time to step away. Many business owners, like me, decide to sell for a mix of personal, financial, and strategic reasons.

What’s your “why?”

Ultimately, selling your business can offer financial security, personal growth, and a life enriched by balance and purpose. This transformative decision can open doors to well-being, stronger relationships, and the chance to pursue new interests, aligning with your evolving needs and desires. Before selling and reaping any of those benefits, figure out your “why.” Approach your sale with crystal-clear reasons for selling your business, and let them guide you.

But even if you’re selling for the best reasons, it doesn’t mean the process will be breezy and pain-free. In my next post, I’ll explain how to grapple with the emotional impact of selling your business.