As a human being it is easy to become emotionally invested in your business. After all the things you have sacrificed for it – kids’ soccer games, recitals, family gatherings, etc., it is understandable how this can happen. However, this investment should be treated like any other. If you consult your financial adviser, stock or bond trader, they will advise you that the best time to sell when the price is highest. In the case of selling a business, it is the same thing.
Unfortunately, as most entrepreneurs are natural risk takers, often they will continue to operate their businesses past the maturity stage and into the declining stage of its life cycle.
To demonstrate the premise of this article, let us examine two identical enterprises: Business A is in the maturity stage and Business B is in the declining stage.