Am I Ready to Sell My Ecommerce Business? Here's How to Find Out.

By: Desirae Odjick

Question:

I'm pretty sure that I’m ready to sell my store. I don’t have the time to focus on it anymore, and I want to prioritize other projects (including another store). The thing is, I'm still not 100% sure. I spent a lot of time building the brand, and I’m feeling hesitant to hand over the reins to someone else. What if I'm letting go too soon and giving up on a winner, or I sell it to the wrong person? Do you have any advice on how to go through with it and feel good about my decision?

Answer:

Letting go of your business isn’t always easy, but there’s still a base level of comfort you want to have going into the decision. After all, you built this, and you want to make sure you’re making the best choice you can for yourself and your business—not to mention the other ventures you want to spend time pursuing.

We asked Nicholas Montgomery, Growth Lead for Exchange, a marketplace by Shopify for buying and selling online stores, to weigh in on your question. The very first thing he said was that the most important factor in moving on from a business is always going to be personal.

What’s your “why”?

There are as many reasons to sell a business as there are business owners.

“If you’re thinking about selling your business (or, for that matter, buying a business) there are any number of reasons you might be considering the decision,” said Nicholas.

“One merchant’s grandfather passed away, so he wanted to sell his business and take time off to travel across the country. He was disconnecting from all internet for 6 months, so he was selling his store. Another person had a child, so that was their new focus.”

First and foremost, step back to examine what made you consider selling your store. It’s a great way to evaluate your options, and find some peace with either choice, selling or not. More personal factors may lead to a much easier decision, but if that’s not the case for you, all is not lost.

Where is your business?  

Even if you don’t have a major life event prompting your thoughts of selling, understanding where you’re hoping a sale can take your business is another great way to evaluate the pros and cons.

“Depending on what’s motivating you to sell, it can guide what you look for in a buyer, and help you get more comfortable throughout the process. As an example, if you’re selling because you’ve lost interest, but you have a strong brand, it’s in your buyer’s best interest to maintain that brand. You’d want to ask them about their plans to build and strengthen the brand before you sold, to make sure they’re a good fit.”

If that’s not the case, or your business is at a place where your brand wouldn’t be considered a strong asset, you’re right to be a bit concerned—and much more cautious—about how a buyer will handle it.

“If you're selling a business that has a lot of excess inventory a buyer would liquidate, and you're just trying to get it out the door, your brand isn’t going to be as important for the buyer. In that case, you should be a lot more cautious, especially if the brand has always been tied to you personally.”

To vet potential buyers, it’s considered quite normal and accepted to have conversations about their plans for the business, and why they’re interested in the opportunity. Nicholas shared two key questions you can ask when interacting with potential buyers.

Read More >> https://www.shopify.com/blog/ready-to-sell-ecommerce-business