Owning a landscaping company can be a rewarding experience financially and personally. Creating or buying a company and watching it grow due to your hard work and business acumen is one of the best feelings in the world.
Running a company can also be one of the most stressful and financially draining things a person can do. The pressures and success of running a landscaping company can make owners dream of an exit plan and if selling their company is viable. There are many reasons to sell your business, but it is important to take your time and figure out what you want to do with your company.
The decision to sell the company you built shouldn’t be taken haphazardly, and you should be able to point out the signs that it might be time to sell to help you make an informed decision. Here are a few reasons a landscaping company owner might want to sell their company.
1. Lack of passion
This is the most critical factor in determining if you should continue to run your landscaping business, because without passion everything else runs downstream. A company usually loses momentum and growth if it is not run by enthusiastic ownership. You should enjoy the challenge of finding new clients, hiring new people, creating business plans, and seeing your landscaping company grow.
However, if your day-to-day management starts to feel like a mundane slog, you may consider selling your company and finding a new passion. A business owner who is not passionate about their business generally will not benefit their business.
2. Your landscaping business is growing and making a profit
Some people would call you crazy for selling a growing and increasingly profitable business, but the reality is it’s easier to sell a successful business than a struggling one. Prospective buyers are more likely to pay a premium for a successful business because they are a safer investment and going concern.
Sometimes it is beneficial to sell your business while it is on the upswing instead of waiting for growth to potentially plateau. If the right buyer comes along with the right offer, you may want to consider selling your business.
3. Your skill set no longer matches your business needs
Every ship needs a captain, and only some captains are suited to lead every crew. Landscaping companies have different structural needs as they grow, and just because you are best suited to lead at one point does not mean this will always be the case. You may be skilled at managing and growing a small business, but struggle to run a medium to large operation.
If you find that your landscaping company has outgrown your skillset, it might be time to step back and sell the company to new leadership.
4. You find a new opportunity
The skills you build as a successful landscaping company owner can often lead to more lucrative opportunities working with other companies. Working for a boss may not be something many business owners want to do; however, some business owners want to escape the grind of ownership and work for another company. Some business owners may want to pursue a new entrepreneurial venture. Owning your own landscaping company should not feel like a burden pushing down on you. If you have a better opportunity on the horizon, pursue it if you find a suitable buyer for your company.
5. Your landscaping company is struggling
The reality is that most small businesses fail, and landscaping company owners are not immune to this trend. Markets change, competition increases, and these may not line up in your business’s favor. If things aren’t going well for your landscaping company, it might be time to cut your losses and sell your company. The challenge in this scenario is it is much harder to get a good valuation on a struggling business. You may have to deal with some harsh market realities in this scenario.
6. You are ready to retire
No one can escape it; at some point, you are going to retire. If you don’t have an in-house succession plan lined up, it may be in your best interest to sell your company and enjoy some well-deserved relaxation. However, selling your business for retirement is something you should plan for regardless. Overall, the goal should be to continue growing your company so you can get the best valuation when it is time to sell. Working with a business broker can help you create a multi-year plan for selling your landscaping company.
There are many reasons you may want to sell your landscaping company and the decision to sell your company – or not – should align with whatever option is in your best interest. The important thing to do is think about the reasons you may want to sell your landscaping company before pulling the trigger. Selling the business you helped grow should never be a decision you make hastily.
Brian Bond is the principal of Strategic Business Brokers Group, in affiliation with American Realty Brokers has helped dozens of owners sell their businesses across Arizona. Bond has been named “Broker of the Year” by the Arizona Business Broker Association.