You never think it will happen to you, but according to a study by Xero, anywhere from 65 to 86 percent of entrepreneurs report burnout somewhere along the journey from startup through stability.
If you feel great and show no signs of slowing down, fantastic. Give this article a quick read anyway, in case your feelings ever change. If you are feeling burnt out and have hopes of selling your business, we’ve got the extra push you need in order to pull through. Consider how burnout can become a barrier for an owner seeking to sell.
Checking Out Before the Deal is Done
The due diligence during a business sale takes time, money and resources. Get up for one last challenge and help keep things running smoothly. If you move slowly through the process while running your business at half speed, the business may look very different to a buyer when it comes time to put pen to paper. We have seen deals fall apart when buyers become uncomfortable purchasing a business that shows a recent decline in sales or profit, whether due to owner burnout, economic conditions, or unknown factors.
Neglecting the Next Layer of Management
Ironically, burnt out business owners have a tendency to take on more responsibilities rather than invest in putting the right people around them. It’s easier to “get to it when you get to it” than to attract, recruit and retain winners at every position.
Remember, buyers want to know that your business is in a position to succeed after the sale. A healthy business includes a senior leadership team, besides you. Do you have tenured staff in training to become leaders? Are you equipping them with the tools they need to succeed? Let’s go. You can do this. You may even find it rejuvenating to align and empower others.
Creating a Culture of ‘Eh’
When an owner is burnt out, it shows—in their tone, their body language, and their overall approach. Even if you are determined to overcome your exhaustion, employees pick up on it and the energy comes down a notch. When a challenge arises, the response might deteriorate from, “Ah, here’s a solution,” to, “Eh, it is what it is.” You do not want your business to get to this point. It might not even be visible to the eye, but it will show up in your numbers.
Not Looking for New Opportunities
For the burnt-out business owner, pursuing that next big client feels like the same old chase. Unlocking a new efficiency isn’t exciting anymore. Updating the process sounds hard.
Are you truly burnt out, or just running a little low on energy? Let’s find out: think of the biggest and best opportunity that could arise for your business today. Do you feel excited? Are you back in action and ready to go get it? If not, it might be time to get serious about selling, even if it means taking a lower sale price to get you out and on to your next chapter before burnout takes a greater toll.
A little less in sale price now is better than a lot less later if the circumstances we’ve discussed set in. See the other factors that determine the ideal timing for selling your business.