Planning To Cash In Your Business For A Comfy Retirement? You Have A 1 in 4 Chance of Success

Planning To Cash In Your Business For A Comfy Retirement?

Small Business Owners Have A 1 in 4 Chance of Successfully Selling Their Business.

Read on to find out some of the things that make small businesses less desirable than larger businesses, and this will give you some ideas about how to prepare your business to be sold.

Here are some statistics on sales of businesses in the U.S.

Less than $750K revenue, 18% are sold
$750K – $2M revenue, 25% are sold
$2M – $30M revenue, 29% are sold
$30M+ revenue, 33% are sold

Source: CABB & Tom West

This means that if your business has less than $750,000 in annual revenue, there is less than a 1 in 5 chance that you will be able to sell it. Even once you get up to $2,000,000 in sales, there is only a 1 in 4 chance of selling your business.

This means that the higher the revenue, the better chance of selling the business.

This is not so much just a revenue target, but reflects the fact that larger businesses have some things that smaller businesses generally do not:

More established operating systems & procedures
Stronger management teams
Specialized, experienced staff
Better marketing strategies and tools
Ability to effectively compete in their target markets
Broader product or services offerings
Deeper client bases with repeat customers
Wider geographic reach
More established partner, alliance and vendor relationships

If your retirement plan and golden years are relying on you successfully selling your business for a nice, big chunk of cash, you may have some work to do between now and then to increase your odds of achieving that comfortable, leisurely retirement.

Learn more about exit strategy planning and some of the things you can do before you try to sell your business that will attract buyers to your business.

Please let us know if you have any questions.

Thank you for your time and interest.

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