Successfully launching, maintaining and growing an eCommerce store or Amazon FBA business is quite a challenge. If you’ve managed to tick all three boxes, major congrats! However, perhaps now you’ve decided that it’s time to sell your online business and try something new. That’s totally cool.
But what if you’re undecided?
If you’re thinking of selling your online business but a little voice in the back of your head keeps asking, “are you sure?” come join us as we take a look at 6 reasons to sell your eCommerce or Amazon FBA business.
It’s okay to sell your business if you need the cash. There’s no shame in that.
In fact, one of the prime reasons entrepreneurs sell their eCommerce business is so that they can raise some extra funds for their next venture.
At this point, then, it’s a good idea to take a look at where you are now in life, both professionally and personally. What are your goals and dreams? What do you want to do next?
If you’ve been plotting to take on the world with another big adventure, it might be the case that you simply have to sell your online business in order to raise some money. Otherwise, the alternatives can be painful – loans, borrowing from friends and families and even credit cards. Those aren’t always the routes to go down.
This one largely depends on why you launched an online store in the first place. But if you launched an online store in order to make a success of it (or to see how successful you could make it), you might want to sell up now if your business has peaked.
In other words, you can get out while you’re on a high, thereby you can leave without harbouring any regrets that you could have done more.
How do you know if your business has peaked?
Well, if your business is, say, 2-3 years old and it’s turning over a good profit, it’s highly likely that you’ve made a real success of things.
Moreover, an online store that is 2-3 years (or more) old and is making a healthy profit is very attractive to buyers.
If, on the other hand, you wait another year and your profits dip, your business will no longer be as attractive. As such, you might want to exit while the going is good so that you get as much money for your business as possible.
Sometimes, an online seller doesn’t decide to sell for professional reasons. Instead, they decide to sell for personal reasons.
For example, it might be that you’ve reached a particular moment in your life where you, after years of running an online business, you simply want to try something different. This could be something in your professional life, or it could be something more personal, such as buying a house or taking care of a member of your family.
Another reason an entrepreneur might decide to sell is if they don’t have the time or energy they once had to dedicate to their eCommerce or Amazon FBA business.
And if you no longer have the same time, energy or even enthusiasm, it’s really bad news for your business.
After all, as you know, running an online store requires lots of dedication if it’s to be successful. And if you’re no longer as committed as you once were, your business could nosedive. The problem here isn’t just that your sales will go down in the short term. The real problem is that your value will decrease in the long term.
As such, if you recognise that you don’t have the time anymore, now might be the right time to sell your business while its value is still high. The last thing you want to do is to prolong things so that you go out with a whimper, rather than a bang.
This is actually a really good reason to sell your store.
Essentially, if you run a store in a particular niche that’s currently in high demand, and if, moreover, your business is currently valued extremely highly, now might be a good time to sell. Buyers want it, the price is good – so why not sell your business, provided selling right now fits in with your future plans?
The thing with running an online store is that some people are cut out for it – and some aren’t. This is a cold harsh truth that’s exactly that – a truth.
Whilst we may not want to admit it, we all have limits. If you’ve been working on your online business for some time now but it clearly isn’t working, now might be the time to give up the ghost and cut your losses.
This isn’t meant as a criticism. It’s just common sense and having enough self-awareness to know when to quit.
Take a look at where you are now and how far you’ve come. Is your business performing well? Is it underperforming? Do you feel frustrated? Have things not turned out as well as you’d hoped?
Are things perhaps getting on top of you?
If you’ve been throwing money at your business but it isn’t going anywhere, you might want to sell now.
These are 6 reasons to sell your eCommerce or Amazon FBA business. If you decide now is the time to sell, working with a broker is a smart idea, especially if you’re a first-time seller.
And because selling an online store is a challenge, we highly recommend that you next take a look at our articles all about pricing up your business.
And good luck!
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