Beware of the Five Signs of Business Burnout

Beware of the Five Signs of Business Burnout

If you’re experiencing business burnout you might be tempted to sell your business as a way out.

But just because you feel you are done with your business is not a good reason to put it on the market.

Although this is actually the time that too many business owners consider listing their business for sale, if you sell your business when you’re experiencing business burnout it’s highly likely you won’t get what it’s worth.

So, before you decide to list your business for sale, take a look and see if any of the following signs of business burnout apply to you.

1. You’ve lost the passion that drove you to start the business in the first place

1. You’ve lost the passion that drove you to start the business in the first place

Has your business become all-consuming and you’ve lost the driving passion you originally began the business with? Perhaps you feel like all you do is work, work and work – and there’s no end in sight?

When you’ve invested so much energy in your business it can be easy to forget why you started the business in the first place. And when you’re spending so much time immersed in the running of the business itself, it can be hard to maintain the energy you need to drive and grow your business.

And if you’ve lost the spark which originally created your business, how can you possibly light that same fire and passion in your potential buyers?

2. You’ve lost focus and direction

2. You’ve lost focus and direction

When you began your business, what motivated and inspired not only you, but also your team and your clients?

Was it your original vision, your dreams and your goals that set a clear path for everyone and pulled you all in the right direction?

As an entrepreneur, it’s easy to become distracted by new ideas and new opportunities … especially after years of hard slog pursuing your original goal.

But if you lose focus and direction, so do your team and your business. And that will be reflected in your profits.

Canny buyers will sense that a bargain is to be had … and snap up your business at a fraction of its worth.

3. You’ve lost your competitive advantage

3. You’ve lost your competitive advantage

Were you originally a market leader but now you feel your competition is catching up to you?

Are they copying your product or service or maybe even bringing in innovative ways of improving what you are doing?

Once you realise the gap between you and your competitors has narrowed, you know you’re losing your competitive advantage in the marketplace.

This in turn puts increased pressure on you to constantly come up with fresh ideas, without which you are going to be left behind…

…and buyers will pay a lot less for a business that’s playing catch up, rather than a business that has the competitive advantage.

4. Your time is taken up with management

4. Your time is taken up with management

Do you feel like your time is increasingly taken up with managing your business and your team? And this is distracting you from focusing on growing your business to the next level?

As your business grows, there are more people and a bigger business to manage, and management is a totally different skill set to entrepreneurship.

Without the capacity to master all the skills you require, or the time to manage the business by yourself, this lack of planning can really affect productivity and profitability.

You don’t have the time to focus on what you do best, and your business can’t grow to its full potential.

5. You don’t have enough capital

5. You don’t have enough capital

Is your cash flow tight and you feel like you’re usually running close to the wire with limited funds?

Your lack of capital is not only extremely stressful, but it is also probably preventing you from introducing new technologies into your business, marketing your business properly and finding the human resources you need to improve your products or services.

This lack of capital will also be apparent on your profit and loss statements, and it will do one of two things to any potential purchaser.

It will discourage potential buyers who are nervous about the cash flow, or it will encourage them to offer a bargain basement price for your business because they know you’re short of cash.

Recognise any of the symptoms of business burnout?

Recognise any of the symptoms of business burnout?

If you’ve answered ‘yes’ and you’re becoming tired of your business, selling can be a tempting option.

But you won’t be able to sell your business for what it’s worth when you are exhausted, running out of energy and close to burnout.

If you really want to sell, don’t decide to sell just because you’re ‘done’ with the business…

PLAN your business exit strategy instead!

Get some advice from an experienced consultant who can help assess your business and come up with a plan to address any problems before you reach business burnout.

Sometimes this assessment needs to start a few years before going to market to allow time to implement the changes needed. And then, once it’s in the right state to sell, a proactive business broker can showcase it by using powerful digital storytelling to achieve the best price in the shortest period of time.

By planning your business exit strategy before you list your business for sale, you’ll not only avoid business burnout by giving yourself time to think, time to plan and time to reignite your passion…

…but you’ll also be giving your business the very best chance of selling for what it’s really worth and setting yourself up for long-term success.