It’s been remarked before that the business world is one of the opposites. There are quite a lot of its and downs, ebb and flow, and most importantly, buying and selling. With 2023 finally here, making the move to sell your business might be the most important decision you make. Today, we explore why this is.
Timing is of the Essence
It’s a well-known fact that many people like making significant changes when a new year comes around. Those who are looking to get into the business world usually prefer to make a move in the first quarter of the new year. This
means that seizing the opportunity to sell in the early goings will usually mean a better marketplace for potential buyers.
The Current State of the Seller’s Market
Four major factors are currently motivating the marketplace in terms of selling. While there are always plenty of reasons why people are looking to buy, here are the three main factors.
While interest rates are always a worry for potential investors and buyers, they’re currently at an all-time low. This means that there are more sources of lending options available to potential buyers. Naturally, this means increased competition among people who are keen on purchasing your business.
A Sudden Increase in Demand
During the pandemic, many people had to adjust to a new way of life almost overnight. As a result, many businesses were forced to close their doors, and many franchise sales were at a standstill. With life returning to a relative state of normalcy, demand for businesses has increased exponentially. Because we live in a consumer-based economy ruled by supply and demand, you can sell for a higher rate due to many looking to enter the business world.
A Lower Risk Perception
If your business weathered the storm of the pandemic and made it out unscathed, this comes across as a low-risk factor for a potential buyer. Despite the fact that the worst has passed, many people are wary of start-ups and unproven opportunities. A business that has a successful track record through less-than-favorable odds is one that will attract more potential buyers.
Increased Resources & Supplies
During the pandemic, and the subsequent year following it, many businesses ran into several issues obtaining the proper supplies to function. Many of these issues have been solved, and supply chains are returning to normal. This means more people will see less risk when looking at a business to take over.