When you’ve put years of time, effort, and money into a business, the decision to sell can be a difficult one. Envisioning a life without your business can be a daunting endeavor, but it’s important to consider opportunity cost in these situations.
Keep reading to find out just how big of a role opportunity cost plays in selling a business.
What is opportunity cost?
Opportunity cost is defined as the loss of potential gain from other alternatives when a choice is made. In short, this means you must consider what you’re losing when you choose to gain something else.
In the case of a business owner wondering ‘Should I sell my business,’ this cost is most relevant in terms of life goals and desires for the future. Let’s take a look at a few examples of opportunity cost in terms of wanting to sell or buy a business in Florida.
Putting years of your life into a business can be a rewarding venture, but all of that effort and emotional labor can often leave you feeling burnt out. If a business that used to be rewarding only seems exhausting, but still shows a lot of potential for future growth, it could be a situation in which the opportunity cost is better elsewhere.
Rapid Business Growth
Sometimes your own talents and experiences can only take your business so far. If the business you’ve built has outpaced your set of skills, it’s an excellent opportunity to consider opportunity cost. Your business has the opportunity to grow in a more productive way under a new owner, and you may have the necessary experience now to start the business you didn’t have the skills for years prior.
Let a Business Broker Help You
Even if you’ve weighed the opportunity cost, it’s important to consult a business broker regarding your decision. Not only can they offer support and resources when you’re selling your business, sell side brokers can ultimately help you decide when the best time to sell your business is, or if it’s a good idea to sell at all.
Whether you’re on the fence about selling your business or you’re just not sure where to start, make sure to contact the Aberdeen Advisors team for all of your needs. According to BizBuySell.com’s Insight Report, 7,842 small businesses were sold in 2016, and we’re here to help add yours to the list.